US Employers Add 165,000 New Jobs in October, Blowing Past Expectations

Good news: The U.S. Bureau of Labor Statistics reported Friday that employment rose by 165,000 new jobs in October 2026, well above the 60,000–65,000 employer consensus. 

“Today’s jobs report shows our great American companies have created nearly 400,000 private-sector jobs in the past three months,” Treasury Secretary Scott Bessent said. “We are fundamentally rebalancing the American economy, away from government-led growth and toward private investment, productive employment, and the revival of our industrial base.”

More good news: The unemployment rate edged down to 4.1%. This also significantly exceeded forecasts, which generally anticipated around 60,000–65,000 jobs, with some estimates ranging roughly from the mid-30,000s to the mid-100,000s depending on the employer survey.

From the BLS Report:

• Payrolls: Total nonfarm +165,000 (private sector +159,000; government +6,000). This was well above the average monthly gain of 48,000 over the prior 12 months.
• Unemployment rate: 4.1% (little changed from 4.2% in September; has stayed in a narrow 4.1–4.3% range since March). Number of unemployed: 7.1 million.
• Revisions: August revised up by 53,000 (to +186,000); September revised up by 31,000 (to +60,000). Combined, the prior two months were 84,000 higher than previously reported.
• Wages: Average hourly earnings for all private nonfarm employees rose $0.14 (0.4%) to $38.00 (+3.1% year-over-year).
• Participation: Labor force participation rate 61.9%; employment-population ratio 59.3% (little changed).

Treasury Secretary Scott Bessent highlighted the report as evidence of re-industrialization, private-sector strength, and a shift away from government-led growth.

In a post on X Friday morning, Bessent said:

Thanks to America’s unrivaled entrepreneurial spirit and dynamism, the re-industrialization and re-privatization of the American economy are gathering extraordinary force.Today’s jobs report shows our great American companies have created nearly 400,000 private-sector jobs in the past three months. Manufacturing employment has now risen by over 100,000 in 2026 alone.We are fundamentally rebalancing the American economy, away from government-led growth and toward private investment, productive employment, and the revival of our industrial base.

Thanks to America’s unrivaled entrepreneurial spirit and dynamism, the re-industrialization and re-privatization of the American economy are gathering extraordinary force.

Today’s jobs report shows our great American companies have created nearly 400,000 private-sector jobs in the past three months. Manufacturing employment has now risen by over 100,000 in 2026 alone.

We are fundamentally rebalancing the American economy, away from government-led growth and toward private investment, productive employment, and the revival of our industrial base.

— Treasury Secretary Scott Bessent (@SecScottBessent) November 6, 2026

Job gains were relatively broad across employment sectors:

• Professional and business services: +70,000 (well above the recent average of 15,000/month), including gains in professional/scientific/technical services and administrative/support services.
• Health care: +42,000 (above the recent average), led by hospitals and home health care services.
• Transportation and warehousing: +25,000 (notably couriers/messengers).
• Manufacturing: +19,000 (continuing an upward trend; +101,000 since a recent low in December 2025).

America is in the midst of a Manufacturing Renaissance, we reported this week.

After years of contraction and stagnation, U.S. manufacturing is expanding again, with solid activity metrics and a wave of reshoring announcements, according to the White House Office of Trade and Manufacturing.  

Other major sectors showed little change, according to the BLS.

The report is the first major economic data release after the Tuesday’s midterm elections. 

What does this mean for the stock market, which tanked yesterday in reaction to Tuesday’s midterm elections?

According to Yahoo Finance: