What happened
The U.S. economy added 165,000 jobs in October, according to data published Friday and reported by The Wall Street Journal. The figure far exceeded the roughly 59,000 jobs that top economic experts had predicted.
The unemployment rate fell to 4.1 percent, down from 4.2 percent the previous month. Average hourly earnings increased 0.4 percent month-over-month, up from 0.3 percent, and were 3.1 percent higher over the past year.
Job figures for September and August were revised higher by a combined 84,000, which The Wall Street Journal described as a sign that the job market has pulled out of its midyear doldrums.
Most of October’s job growth came from professional and business services, including administrative and support workers, according to Business Insider.
Economists and market observers offered mixed assessments. Clark Bellin of Bellwether Wealth said the report could improve stock market sentiment after concerns about artificial intelligence regulation following the 2026 midterm elections. Ger Doyle of ManpowerGroup cautioned that demand must spread into more industries before signaling a broader hiring recovery. Steve Rick of TruStage warned that one strong month does not undo a slowdown.
Lindsay Rosner of Goldman Sachs Asset Management said the payroll number strengthens the case for the Federal Reserve to raise interest rates in December, citing continued tightening in the labor market and the Fed’s focus on moderating inflation.
