U.S. employment growth in October exceeded expectations, with employers adding 165,000 new jobs, although wage increases still lag behind inflation. A report released on November 6, 2026, by the U.S. Bureau of Labor Statistics ( Bureau of Labor Statistics ) showed that the unemployment rate fell slightly to 4.1%, and the hiring data for the previous two months was also revised upward.

Key Points

• The non-farm payroll growth in August and September was revised upward by a total of 84,000 jobs.
• The annual salary increase was 3.1%, lower than the inflation rate of 3.7% in September.
• In September, the number of job vacancies increased, and the number of layoffs dropped to a 18-month low.

The employment growth in October exceeded economists' expectations, and revisions to data from the previous months also reinforced this trend. The Bureau of Labor Statistics raised its previous estimates for August and September by a total of 84,000 jobs.

Economists previously believed that the labor market was characterized by slower hiring, but not many layoffs. The stronger-than-expected employment growth in October, along with a slightly lower unemployment rate, indicates that the U.S. economy still has resilience amidst inflation and the ongoing wars in the Middle East.

The average hourly wage increased by 3.1% year-on-year, a slight acceleration from the previous month, but it is still lower than the annualized inflation rate of 3.7% in September. The gap between wage growth and rising prices continues to exist.

Employment growth was recorded in healthcare, transportation, warehousing, and manufacturing. However, even as U.S. employment growth was stronger in October, household spending continued to face pressure: due to the Iran war, the average price of gasoline is $1 per gallon higher than a year ago, and diesel prices are 60% higher than before the war.

This report was released after the mid-term elections, whose results ensured that the Democratic Party would control Congress for the next two years. Polls indicate that economic conditions, particularly the prices of gasoline and grocery items, are one of the main sources of voter dissatisfaction.

According to data from the Bureau of Labor Statistics, the number of layoffs in September dropped to a 18-month low. Additionally, according to statistics from placement companies Challenger, Gray, and Christmas, the number of layoffs in October was slightly less than 44,000, a decrease of 71% compared to a year ago.

The Labor Statistics Bureau's job vacancy data for September also indicates that labor demand is more robust. The number of vacant positions increased by 333,000 from August to 7.52 million, exceeding the 7.15 million expected by the Dow Jones survey.

The monthly "Job Vacancies and Labor Mobility Survey" released by the Bureau of Labor Statistics on November 3, 2026, also showed that the number of people hired and those who voluntarily resigned in September had increased as well.

The Federal Reserve kept interest rates unchanged in October, after raising them to 3.75% to 4% in September due to inflation. The rate hike in September was the first since 2023, and economists expect the central bank to raise rates again at its December meeting.

At the same time, the stock market is also facing another pressure, as investors seem to be concerned about artificial intelligence spending. The Nasdaq index, which has a high weight of technology stocks, rebounded for a while on Wednesday, but then returned to a correction range on Thursday. A correction usually refers to a decline of 10% from the recent high point of the index.

This article was generated with the assistance of artificial intelligence and has been reviewed by an editorial team.

Amelia Tomasicchio

Amelia is an expert in the field of digital marketing. She entered the fintech industry in 2014 after writing a paper on Bitcoin technology. She has contributed to several international cryptocurrency-related magazines and served as the Chief Marketing Officer for Eidoo. Currently, she is a co-founder of The Cryptonomist and also a marketing instructor at Digital Coach in Milan. She has written a book about NFT for an Italian publisher Mondadori and has helped artists and companies enter this field. As a consultant, Amelia is also involved in metaverse-related projects such as The Nemesis and OVER.