US Payrolls Rise 165,000 in October as Revisions Add 84,000 to August and September
US employers added 165,000 jobs in October as business services, health care and transport hired, while unemployment changed little at 4.1%, the Bureau of Labor Statistics said on 6 November.
For American workers and policymakers, October’s gain was more than three times the prior 12-month average of 48,000 a month. Three-month payroll growth now averages 137,000. In The Edge’s reading, firmer hiring gives weight to the two policymakers who dissented in favour of a rate rise on 28 October, while a jump in involuntary part-time work is the main sign of slack.
Business services, health care and transport supply most of the gain
Professional and business services added 70,000 jobs, well above the sector’s average monthly gain of 15,000 over the prior 12 months. Professional, scientific and technical services contributed 33,000, and administrative, support and waste services 28,000. The sector has added 269,000 jobs since a low in October 2025.
Health care added 42,000 jobs, against a monthly average of 31,000 over the prior 12 months. Hospitals added 16,000 jobs and home health care services 11,000.
Transportation and warehousing added 25,000, with couriers and messengers supplying 17,000. Since a low in February the industry has gained 104,000 jobs, 71,000 of them at couriers.
Together the three industries supplied 83% of October’s gain. Private employers added 159,000 jobs and government 6,000.
Manufacturing added 19,000, led by computer and electronic products at 7,000. Factory payrolls have grown by 101,000 since a low in December 2025. Motor vehicles and parts added 4,100 jobs, after losses in August and September.
The bureau described employment in the other major industries, including construction, retail, leisure and hospitality and government, as little changed. Leisure and hospitality was 13,000 lower on the month, and wholesale trade 9,100 lower.
Breadth improved. The one-month diffusion index for 250 private industries rose to 57.6 from 54.2, where 50 marks an even balance between industries adding and shedding staff.
The two previous months now look stronger. August is a gain of 186,000, up 53,000 from the earlier estimate. September now shows 60,000 jobs, against a first estimate of 29,000.
Over the year to October, seasonally adjusted payrolls grew by 885,000, or 0.6%. Federal government payrolls are 71,000 smaller than a year earlier, a fall of 2.6%.
Payroll change by industry (in thousands)
| Industry | Oct | Sep |
|---|---|---|
| Total nonfarm | 165 | 60 |
| Total private | 159 | 78 |
| Construction | -3 | 16 |
| Manufacturing | 19 | 13 |
| Wholesale trade | -9.1 | 8.1 |
| Retail trade | 6.0 | 12.7 |
| Transportation and warehousing | 24.8 | 7.4 |
| Information | -1 | -11 |
| Financial activities | 7 | -14 |
| Professional and business services | 70 | 8 |
| Health care and social assistance | 55.1 | 19.8 |
| Leisure and hospitality | -13 | 13 |
| Government | 6 | -18 |
Seasonally adjusted over-the-month change; October and September are preliminary.
Hourly pay climbs 0.4% while the workweek stays at 34.4 hours
Average hourly earnings for private employees rose 0.4% to $38.00 in October. Over 12 months they were up 3.1%.
Production and nonsupervisory workers make up 81.6% of private employees. Their hourly pay rose 0.4% to $32.75, while their workweek shortened by 0.1 hour to 33.8 hours.
The average week for all private employees stayed at 34.4 hours. In manufacturing it was unchanged at 40.5 hours, while overtime edged up to 3.1 hours.
Average weekly earnings reached $1,307.20, up 3.7% from a year earlier and faster than hourly pay. The workweek is 0.2 hour longer than in October 2025, which explains the gap. The bureau’s index of aggregate weekly payrolls, which combines jobs, hours and pay, rose 0.5% on the month and stands 4.5% above October 2025.
Prices are the test for those gains. Consumer prices rose 3.7% in the year to September. Over the same year, the bureau’s real earnings measure showed hourly pay 0.7% lower after inflation. The October consumer price index and real earnings reports, both due on 10 November, will show whether wage growth is keeping pace with inflation.
Earnings and hours, private payrolls
| Measure | Oct 2026 | Oct 2025 |
|---|---|---|
| Hourly earnings | $38.00 | $36.85 |
| Weekly earnings | $1,307.20 | $1,260.27 |
| Weekly hours | 34.4 | 34.2 |
| Payrolls index | 213.3 | 204.2 |
Seasonally adjusted averages for all employees on private nonfarm payrolls. The payrolls index is aggregate weekly payrolls, 2007=100.
The household survey shows more people working part time for economic reasons
The household survey, which counts people rather than jobs, recorded 463,000 more employed people in October. The labour force grew by 421,000, and the number unemployed slipped by 41,000 to 7.1 million.
Participation rose to 61.9% and the employment-population ratio to 59.3%, each up 0.1 point. The bureau said both have shown little net change since January, and the unemployment rate has stayed between 4.1% and 4.3% since March.
The broader measure moved the other way. U-6, which adds people working part time for economic reasons and those marginally attached to the labour force, rose to 7.9% from 7.6%. That returns it to its June and July level.
Part-time work for economic reasons rose by 339,000 to 4.8 million. People whose hours were cut because of slack work or business conditions accounted for the rise, up 356,000, while those who could find only part-time work were little changed. The gap between U-6 and the official rate widened to 3.8 points from 3.4.
Long-term unemployment, 27 weeks or more, was 2.0 million, or 27.6% of the unemployed. Discouraged workers numbered 448,000.
The household tables carry no comparison with a year earlier: the bureau did not collect household data for October 2025 because of the federal government shutdown.
The Federal Reserve kept the target range for the federal funds rate at 3.75% to 4.00% on 28 October, as set out in our report that day. Its statement said job gains had kept pace with the workforce and that inflation remains elevated. The vote was 10 to 2, with Lisa D. Cook and Beth M. Hammack preferring a quarter-point increase.
Household survey measures (in %)
| Measure | Oct | Sep |
|---|---|---|
| Unemployment rate | 4.1 | 4.2 |
| U-6 rate | 7.9 | 7.6 |
| Participation rate | 61.9 | 61.8 |
| Employment-population ratio | 59.3 | 59.2 |
Seasonally adjusted. U-6 counts the unemployed, people marginally attached to the labour force and those working part time for economic reasons, as a share of the labour force plus the marginally attached.
What to watch:
The bureau publishes the October consumer price index and real earnings reports on 10 November at 13:30 GMT.
The rate-setting Federal Open Market Committee meets on 8 and 9 December, with new economic projections.
November’s employment report is due on 4 December at 13:30 GMT.
Method: figures are from the Bureau of Labor Statistics’ The Employment Situation for October 2026 (USDL-26-1632), released on 6 November 2026, with consumer price and real earnings figures from its September 2026 releases of 14 October 2026 and the policy decision from the Federal Reserve’s FOMC statement of 28 October 2026; percentages, sums and comparisons not attributed to a source are The Edge’s calculations.
Sources: Bureau of Labor Statistics, Federal Reserve, The Edge.
