U.S. Economy Adds 165,000 Jobs in October as Unemployment Rate Edges Down to 4.1 Percent
November 6, 2026 – Employment increased by 165,000 in October as the U.S. unemployment rate edged down to at 4.1 percent, according to the most recent U.S. Bureau of Labor Statistics report. Employment increased in professional and business services, in healthcare, and in transportation and warehousing.
Among the major worker groups, the unemployment rates showed little or no change in October for adult men (3.9 percent), adult women (3.6 percent), teenagers (13.9 percent), and people who are White (3.7 percent), Black (6.6 percent), Asian (2.8 percent), or Hispanic (4.7 percent). The number of long-term unemployed (those jobless for 27 weeks or more), at 2.0 million, changed little over the month. The long-term unemployed accounted for 27.6 percent of all unemployed people.
Both the labor force participation rate, at 61.9 percent, and the employment-population ratio, at 59.3 percent, changed little in October. These measures have shown little net change since January. The number of people employed part time for economic reasons increased by 339,000 to 4.8 million in October. These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs.
In October, the number of people not in the labor force who currently want a job changed little at 6.0 million. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job.
Among those not in the labor force who wanted a job, the number of people marginally attached to the labor force changed little at 1.6 million in October. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the four weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, also changed little over the month at 448,000.
Where Job Growth Occurred
- Employment in professional and business services increased by 70,000 in October, well above the average monthly gain of 15,000 over the prior 12 months. In October, employment continued to trend up in professional, scientific, and technical services (+33,000), in administrative and support and waste management and remediation services (+28,000), and in management of companies and enterprises (+9,000). Professional and business services has added 269,000 jobs since a recent low in October 2025.
- Healthcare added 42,000 jobs in October, higher than the average monthly gain of 31,000 over the prior 12 months. In October, employment gains occurred in hospitals (+16,000), home healthcare services (+11,000), and outpatient care centers (+5,000).
- In October, transportation and warehousing added 25,000 jobs, reflecting growth in couriers and messengers (+17,000) and air transportation (+4,000). Transportation and warehousing has added 104,000 jobs since a recent employment low in February, with couriers and messengers (+71,000) contributing most of the gain.
- Manufacturing employment continued to trend up in October (+19,000) and has increased by 101,000 since a recent low in December 2025. In October, job gains occurred in computer and electronic product manufacturing (+7,000), machinery manufacturing (+4,000), and primary metal manufacturing (+4,000).
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- Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; wholesale trade; retail trade; information; financial activities; social assistance; leisure and hospitality; other services; and government.
ManpowerGroup Report
Employers expect Global hiring momentum to strengthen slightly heading into the fourth quarter of 2026, according to ManpowerGroup’s latest Employment Outlook Survey of 39,878 employers across 42 countries. Beneath the headline, the data points to a workforce in transition. Among employers planning to add staff, 62 percent cite changing roles and skills as the primary driver, including branching into new areas, new expertise demanded by advancing technology, and shifts in the skills their services require.
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“This data demonstrates employers continue to place high value on human skills, even as the nature of work shifts with technological advancements,” said Jonas Prising, ManpowerGroup chair and CEO. “Nearly two-thirds of employers tell us they are hiring because the roles and skills their organizations need are changing – many are reconsidering the tasks within jobs rather than displacing full positions. Over the next five years, the defining challenge will be redesigning work at scale. The most forward-thinking employers are building the skills they need from both within and outside their companies – shaping agile workforces that can adapt as organizations seek to realize the true value of AI.”
The survey also points to a more surprising finding on early-career hiring. Across every industry surveyed, more employers report increasing entry-level hiring than cutting it, with 45 percent adding early-career talent compared with 2025 against 20 percent pulling back. Where employers are scaling back, cost pressure and a lack of experience weigh more heavily than AI, suggesting automation is reshaping early-career roles rather than eliminating the need for them.
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Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
