October Jobs Report Shows Surprising Strength
October hiring was well above expectations, with the economy adding 165,000 jobs compared to forecasts of around 60,000. Job growth for August and September was also revised higher by a combined 84,000 jobs. Meanwhile, the unemployment rate edged down from 4.2% to 4.1%.
Bottom line: This was a strong report in several areas, with some encouraging details beneath the headline numbers. Full-time employment increased by 714,000, while part-time employment declined by 242,000. Plus, the growth in the labor force helped the unemployment rate fall to 4.1% for the right reasons – not due to an exodus from the labor force.
There is, however, an important caveat. Monthly jobs numbers from the Bureau of Labor Statistics (BLS) can be volatile and are often revised as more data becomes available. This report also came in stronger than several other measures of the labor market, including the latest estimates from ADP and Revelio Labs.
Private Sector Hiring Tops Expectations
Private employers added 86,000 jobs in October, matching September’s revised gain and beating expectations of about 69,000, according to ADP. Job growth was spread across businesses of all sizes. Workers who changed jobs saw their pay rise an average of 7.6% over the past year, the largest increase since March 2024. By comparison, workers who stayed with their current employer received average raises of 4.4%.
Note that ADP's report measures private-sector job growth, which came in notably below the 159,000 private-sector job gains reported by the BLS.
Bottom line: Hiring showed “solid growth” for a second consecutive month, according to ADP, following much weaker gains in July and August. However, job growth remains uneven across industries. Professional and business services lost jobs for the third straight month, potentially reflecting the growing impact of AI. Meanwhile, education and health services continued to drive much of the job growth, reflecting sustained demand for workers as the population ages.
Additional Labor Market Highlights
Revelio Labs reported just 26,000 job gains in October, with health care and social assistance among the key drivers, consistent with the trends reported by ADP.
Job openings totaled 7.52 million in September, well above expectations of 7.1 million. However, the headline figure may somewhat overstate the number of unique opportunities available to workers because some remote jobs are posted in multiple locations.
New unemployment claims edged down to 189,000, tying a 57-year low. Continuing claims stood at 1.72 million, which is down from highs seen earlier this year. However, some of that decline may reflect unemployment benefits expiring rather than workers finding new jobs.
Seasonal hiring announcements rebounded in October after a slow start in September. Challenger, Gray & Christmas reported 470,400 seasonal hiring announcements through October, up 26% from the same period in 2025. Challenger added that “seasonal employers are staggering their announcements and waiting longer to see how the season shakes out before they commit to numbers.”
Family Hack of the Week
These Peanut Butter Bars with Salted Chocolate Ganache are a decadent way to celebrate National Peanut Butter Lovers Month. This delicious recipe yields 16 squares.
Coat the bottom and sides of an 8-by-8-inch baking dish with nonstick spray. In a large bowl, stir together 1 1/2 cups confectioners’ sugar, 1 1/2 cups graham cracker crumbs, 1 cup creamy peanut butter, 1/8 teaspoon kosher salt, and 1 stick melted unsalted butter until well combined. Press the mixture evenly into the prepared baking dish and set aside.
Chop 8 ounces semisweet baking chocolate into small pieces and place in a medium bowl with 1/8 teaspoon salt. Heat 1 cup heavy cream in a small saucepan until bubbles begin to form around the edges. Pour the hot cream over the chocolate and let sit for 1 minute. Whisk until the chocolate is completely melted and the ganache is smooth.
Pour the ganache over the peanut butter mixture and refrigerate until the chocolate is cooled and set, at least 45 minutes or up to overnight. Sprinkle evenly with 1 teaspoon flaky sea salt, then cut into squares and serve.