By Andrew Moran
Employment conditions strengthened in October as job growth blew past economists’ forecasts and the unemployment rate unexpectedly fell.
The economy added 165,000 new jobs last month, from an upwardly revised 60,000 in September, according to data released by the Bureau of Labor Statistics on Nov. 6.
The consensus forecast suggested a gain of 65,000.
October’s unemployment rate dipped to 4.1 percent—below the market estimate—from 4.2 percent the previous month.
New payroll data reaffirm the U.S. labor market’s resilience amid several headwinds, from elevated inflation to ongoing tariffs.
In addition to last month’s solid reading, the bureau revised previous months higher. September’s gain was revised up by 31,000, from 29,000 to 60,000. August’s count was also adjusted by 53,000, from 133,000 to 186,000.
Year-to-date, the economy has created 861,000 jobs, far higher than the 116,000 added in all of 2025.
“The economy is doing well,” Chris Zaccarelli, chief investment officer at Northlight Asset Management, told The Epoch Times in an emailed note.
Last month’s job growth, meanwhile, came almost entirely from the private sector, as government payrolls rose by just 6,000.
Employment gains were also broad-based, led by professional and business services (70,000), healthcare (42,000), transportation and warehousing (25,000), and manufacturing (19,000). Over the last couple of years, healthcare has been a key driver of job growth in the United States.
Nominal wages came in above expectations, with average hourly earnings rising 0.4 percent last month. On a 12-month basis, average hourly earnings eased to a higher-than-expected 3.1 percent.
Employed full-time workers surged by 714,000, while part-time employment slipped by 242,000. Self-employed workers declined by more than 100,000.
For the third straight month, the workforce participation rate edged up to 61.9 percent, the highest since March. More than 400,000 people entered the labor force.
This week’s tranche of employment highlighted persistently low layoffs. Unemployment claims were at a 57-year low, and planned job cuts in October fell 71 percent from a year ago. But the latest nonfarm payrolls report suggests hiring momentum could be picking up heading into the busy holiday season.
“Today’s jobs report, which blew past expectations and added 165,000 jobs, is proof that President Trump’s pro-growth economic agenda is working,” White House spokesman Matthew Middleton said in a statement.
“From almost 20 fair trade deals to trillions in manufacturing investments, this administration is putting America back on a path to prosperity. President Trump’s mission remains unchanged: lowering costs, creating jobs, boosting our economy, and putting American workers first.”
With the Federal Reserve focused primarily on the price stability side of its dual mandate, a strong October jobs report provides the Federal Reserve with one less worry when crafting monetary policy.
But this also means higher interest rates, says Larry Holzenthaler, senior portfolio manager at Catalyst Funds.
“This clearly sets the Fed up very well to continue to bring their target rate higher to address inflation. Our view remains that the Fed needs to continue to bring rates higher,” Holzenthaler said in an emailed note to The Epoch Times.
The Fed left interest rates unchanged last month following its first rate hike in more than three years in September. Futures markets overwhelmingly expect the central bank to raise rates by a quarter point at the Dec. 8–9 meeting.
U.S. Treasury bond yields were mostly up, with the benchmark 10-year inching closer to 4.9 percent.
Following its worst day in 19 months, U.S. stocks were mixed after the October payroll data.
The tech-heavy Nasdaq Composite Index rose about 400 points, or 1.5 percent. Conversely, the blue-chip Dow Jones Industrial Average erased around 500 points, or nearly 1 percent. The broad-market S&P 500 was little changed.
Hiring could kick into high gear with the economy entering the busy holiday season.
Seasonal hiring got off to a hot start when Amazon said it would hire 300,000 U.S. workers, up by 50,000 from each of the last three years. UPS also announced 100,000 seasonal hires.
In October, seasonal hiring plans surged 26 percent from a year ago, topping about 470,000, according to global outplacement firm Challenger, Gray and Christmas.
“Employers are holding on to the workers they have heading into the holidays, and the hiring they are announcing is largely short-term, seasonal work. Companies want the flexibility to meet holiday demand without adding permanent headcount,” Andy Challenger, chief revenue officer for Challenger, Gray and Christmas, said in a statement.
Despite demand for labor remaining elevated—holiday-related or not—the percentage of people unemployed for an extended period remains high.
The long-term unemployment rate—individuals out of work for 27 weeks or more as a share of total unemployed—was 27.6 percent, from 27.1 percent in September.
Emel Akan contributed to this report.
