The US labor market performed better than expected in October 2026, with the economy generating 165,000 new jobs, according to data reported by the Financial Times.
The figure significantly exceeded economists’ forecasts and shows that employment continues to support economic growth in the United States, even as uncertainty over the performance of the world’s largest economy persists.
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Data from the US Bureau of Labor Statistics (BLS) show that 100,000 more jobs were created than the forecast of 65,000 set by economists surveyed by Reuters. The unemployment rate fell to 4.1%, from 4.2% in September, while the number of unemployed people was estimated at around 7.1 million.
With 165,000 new jobs, employment growth in October was well above the monthly average of 48,000 jobs recorded over the past 12 months.
The professional and business services sector was the main contributor, adding 70,000 jobs, compared with a monthly average of 15,000 over the past year. Healthcare added 42,000 jobs, transportation and warehousing 25,000, while manufacturing added 19,000.
Figures for previous months were also revised upward. For August, the new estimate shows that 186,000 jobs were created, compared with the 133,000 initially reported, while September’s figure was revised to 60,000 from 29,000. Overall, these revisions added 84,000 jobs to the data for the two months.
Despite these positive developments, several indicators continue to reflect weakness in the labor market. The number of people working part time for economic reasons rose by 339,000, reaching 4.8 million. These are individuals who want full-time work but have been unable to find it.
In October, average hourly earnings in the private sector rose by 0.4% to $38. On an annual basis, wage growth was 3.1%.
The employment results give the Federal Reserve more room to continue its efforts to combat inflation.
Strong data have increased expectations that the Federal Reserve could raise interest rates in December, the Financial Times reported. After the figures were released, US bond yields and the dollar initially rose, but those moves were later reversed.
Investors’ main concern is inflation, which has been affected by the conflict in the Middle East and rising energy prices. Although the US economy continues to create new jobs, price pressures on households remain a significant challenge for monetary policy.
