The United States delivered a strong jobs report for October, adding 165,000 jobs and significantly surpassing the 59,000 jobs economists had expected. This brings total nonfarm payroll employment to 159.29 million. The job growth was particularly robust across key sectors, with professional and business services adding 70,000 positions, well above its previous average monthly gain of 15,000 jobs. Healthcare continued its strong performance with 42,000 roles added, well above its average 31,000 new monthly payrolls. Manufacturing contributed 19,000 jobs, while leisure and hospitality gained 53,000 jobs despite accommodation and food services falling by 10,600 positions during the holiday season.
Despite the positive job growth, unemployment data presented conflicting signals. The official unemployment rate declined by 0.1 percentage points to 4.1%, beating the consensus forecast of 4.2%. The U-6 unemployment rate increased by 0.3 percentage points to 7.9%, creating a divergence alongside a three-tenths increase in discouraged or marginally-attached workers. The household survey showed employment rising by 463,000 to 163.615 million, while the civilian labor force expanded by 421,000 to 170.683 million, resulting in a participation rate increase of 0.1 percentage points to 61.9%. This represents an improvement from September's 61.8% participation rate, though it remains below pre-pandemic levels.
Average hourly earnings for all nonfarm workers increased by $0.14 to $38.00, representing a 3.1% year-over-year gain from the previous year's average of $36.85. Production and nonsupervisory workers saw wages rise by $0.12 to $32.75, marking a 3.3% increase from the prior year's $31.70. Average weekly hours remained unchanged at 34.4 hours for all private employees, while manufacturing hours held steady at 40.5 hours. The report also showed involuntary part-time work increasing by 339,000 to 4.84 million. The employment-population ratio also ticked up from 59.2% to 59.3%.
The October report included significant revisions to previous data, with August employment figures revised upward by 53,000 and September by 31,000. These revisions resulted in 84,000 more jobs being reported for August and September combined than previously estimated. The data reflects the Bureau of Labor Statistics' annual population control adjustments, which typically involve substantial revisions to account for demographic changes. According to Allianz Trade North America's senior economist Dan North, "You have to look pretty hard to find something to dislike in there. It's a really, really good report, and all around I think you'd say it's stronger than expected and the best one in a while." EY economists noted that labor market conditions remain remarkably healthy, with the unemployment rate holding in a relatively narrow range despite marked slowdown in hiring.
