Hiring in October blew past expectations, with U.S. employers adding 165,000 jobs and unemployment edging down to 4.1%.
The Bureau of Labor Statistics (BLS) also revised its jobs estimates upward for the previous two months, concluding that the economy added 186,000 jobs in August, 53,000 more than it previously reported, and 60,000 in September, 31,000 more than it previously reported.
However, a detailed look at the October jobs report paints a less encouraging picture of the U.S. job market.
While the economy added jobs overall, BLS also found that the number of Americans working part-time rose by 339,000, to roughly 4.8 million. This jump was almost entirely attributable to “slack work or unfavorable business conditions”—i.e., employers reducing workers’ hours without laying them off completely.
The data also showed that affordability concerns, widely considered to be a major factor behind the outcome of Tuesday’s elections, are not going away. Average hourly earnings have risen just 3.1% over the past year, compared to a 3.7% increase in the consumer price index, a commonly-used measure of inflation.
BLS identified strong job growth in professional and business services, which added 70,000 jobs in October; health care, which added 42,000 jobs; and transportation and warehousing, which added 25,000 jobs.
The transportation and warehousing category has added 104,000 jobs since February, with increased employment among couriers and messengers (+71,000 jobs) accounting for most of the increase.
Manufacturing employment also continued to trend up in October, adding 19,000 jobs, and has increased by 101,000 since December 2025.