US Jobs Surge: Nonfarm Payrolls Jump by 165,000 in October
US jobs grew by 165,000 in October, smashing the 12-month average. Discover which sectors led the growth and the latest unemployment trends.
The United States labor market witnessed a significant spike in growth this October, with US nonfarm payrolls increasing by 165,000. This surge is particularly striking as it is more than three times the average monthly gain of 48,000 recorded over the past year, according to the latest Employment Situation report from the US Bureau of Labor Statistics (BLS).
Stability Amidst Growth
Despite the sharp increase in job additions, the overall unemployment rate remained steady at 4.1 per cent. The total number of unemployed individuals stood at 7.1 million in October, showing almost no change from the previous month. Since March, the unemployment rate has remained remarkably stable, fluctuating only within a narrow band between 4.1 per cent and 4.3 per cent.
A closer look at the demographics reveals a consistent trend across various groups. The unemployment rates for adult men (3.9 per cent) and adult women (3.6 per cent) saw little to no change. Similarly, the rates for teenagers (13.9 per cent) and across different ethnic groups—including White (3.7 per cent), Black (6.6 per cent), Asian (2.8 per cent), and Hispanic (4.7 per cent)—remained flat.
Sector-Specific Wins: Who is Hiring?
The growth in October was not uniform across all industries, but several key sectors drove the momentum:
- Professional and Business Services: This sector was the primary engine of growth, adding 70,000 jobs—far exceeding its 12-month monthly average of 15,000. Gains were seen in technical, scientific, administrative, and waste management services, as well as corporate management.
- Healthcare: Continuing its steady climb, healthcare added 42,000 jobs, beating its usual monthly average of 31,000.
- Transportation and Warehousing: This sector saw an increase of 25,000 jobs, with couriers and messengers adding 17,000 and air transportation adding 4,000.
- Manufacturing: The sector added 19,000 jobs, contributing to a total gain of 101,000 positions since its low point in December 2025.
Conversely, sectors such as construction, retail trade, financial activities, government, and leisure and hospitality showed little to no change in employment levels.
The Undercurrent: Part-Time Struggles
While the headline numbers look positive, there is a concerning trend regarding the quality of employment. The number of people working part-time for economic reasons jumped by 339,000, reaching a total of 4.8 million. These are individuals who desire full-time work but are limited by reduced hours or an inability to find full-time positions.
Additionally, the number of long-term unemployed—those without a job for 27 weeks or more—remained stagnant at 2 million, representing 27.6 per cent of the total unemployed population.
Earnings and Labor Metrics
Paychecks saw a modest increase in October. Average hourly earnings for private nonfarm employees rose by 14 cents (0.4 per cent) to reach USD 38.00. Over the last year, these earnings have grown by a total of 3.1 per cent. For production and nonsupervisory employees, the average hourly rate increased by 12 cents to USD 32.75.
Regarding work hours, the average workweek for private nonfarm employees held steady at 34.4 hours, while those in manufacturing averaged a longer 40.5-hour week. The labor force participation rate was recorded at 61.9 per cent, with an employment-to-population ratio of 59.3 per cent.
Revised Figures for August and September
The BLS also updated its previous data, revealing that the labor market was even stronger in the preceding months than initially thought. August's payroll growth was revised upward by 53,000 to 186,000, and September's figure was increased by 31,000 to 60,000. In total, the employment gains for those two months were revised upward by 84,000.