US adds 165,000 jobs in October, far above forecasts, as unemployment falls to 4.1%

The US Bureau of Labor Statistics released its October employment report on Friday, November 6: employers added 165,000 jobs, far above the roughly 65,000 economists polled by Reuters had expected, while the unemployment rate slipped from 4.2% in September to 4.1%. The report landed a day after Wall Street's worst selloff since April 2025, when the Nasdaq fell 5.5% in a single session. (Photo: a US job fair, file image.)

More than triple the recent monthly average

The October gain was more than triple the average monthly increase of 48,000 over the prior 12 months. Professional and business services led hiring with 70,000 jobs, far above its 15,000 average monthly gain over the prior year, while health care and manufacturing also added jobs. The bureau also revised the prior two months higher: August's gain rose by 53,000 to 186,000 and September's by 31,000 to 60,000 — a combined 84,000 more jobs than previously reported.

Wages up 3.1% from a year ago, above forecasts

Average hourly earnings rose 0.4% on the month to $38.00 and 3.1% over the past 12 months, both above forecasts of 0.3% and 2.9%. The labour force participation rate held at 61.9%. But the broader U6 underemployment rate rose from 7.6% to 7.9%; the number of people working part time for economic reasons rose by 339,000 to 4.8 million, and long-term unemployment held at 2.0 million, or 27.6% of all unemployed people.

December Fed meeting in focus

The strong jobs data makes a December rate rise by the Federal Reserve more likely, according to market commentary. The Fed left its benchmark rate in a range of 3.75% to 4.00% at its meeting last week. October consumer inflation data, due on Tuesday, is the next key input for policymakers ahead of the December meeting.