US adds 165,000 jobs in October as unemployment falls to 4.1%
According to the Bureau of Labor Statistics, the US economy added 165,000 jobs in October; the strong report is expected to influence the Federal Reserve's December decision.
According to the US Bureau of Labor Statistics (BLS), the economy added 165,000 nonfarm jobs in October 2026 — more than analysts had expected. The unemployment rate fell to 4.1% from 4.2% in September.
Wages and real income
Average hourly earnings rose 3.1% over the year. Because that is below current inflation (about 3.7%), workers' real incomes are in effect declining. The August and September figures were revised upward by a combined 84,000.
The Federal Reserve
After the strong report, financial markets priced in a high probability (CBS: about 77%, NBC: about 80%) that the Federal Reserve will raise its key rate at its December 8–9 meeting. Job gains were concentrated mainly in professional and business services and in health care.
Weakness beneath the surface
According to Indeed Hiring Lab, more than a quarter of unemployed workers had been searching for six months or longer in October — a share typically seen only after a recession. In other words, beneath the strong headline numbers it is becoming harder for the unemployed to find work.
