Job growth in October outpaced expectations, and many industries saw expanded hiring, providing a bright spot in the economy for Americans concerned about affordability.
In October, employment rose by 165,000 jobs, far above economists’ predictions of around 70,000 jobs. September’s report was also revised upward to 60,000 jobs from the previous estimate of 29,000. August’s numbers were similarly adjusted, adding 53,000 jobs for a total of 186,000 that month. In total, the release reported 249,000 more jobs over the past three months than previously recorded.
Unemployment dropped slightly to 4.1% in October from 4.2% in September. Labor force participation also increased—to 61.9% from 61.8% the month prior—showing that more people want to enter the workforce, and more of those people are able to find jobs.
Many industries saw outstanding gains in October. Professional and business services grew the most this month, adding 70,000 jobs. This is nearly five times the average monthly hires of this sector, which sits at 15,000 jobs per month over the past year. Professional and business services is a broad category which includes legal services, accounting, design firms, consultants, management, office administration, and security services. The sector saw a low in October 2025, but has rebounded over the course of the past twelve months, adding 269,000 jobs in total. Nearly a quarter of that amount was added in October 2026. These figures defy predictions of declining white-collar jobs due to AI, and demonstrate a continued need for professional expertise across many different service types.
Health care continued its trend of strong growth from previous months. The sector added 42,000 jobs in October, higher than its monthly average of 31,000 over the past year.
Another sector with strong job additions was transportation and warehousing. The industry gained 25,000 jobs, focused in the sub-sector of couriers and messengers. As the holiday season approaches, and families depend on shipping during the largest retail event of the year, companies are bolstering their employee numbers to prepare for the demand. As consumers continue to power the economy in general (as we saw in the advance release of Q3 GDP figures, and the 0.5% increase in consumer spending in September), they also play a key role in driving hiring figures for this industry.
Manufacturing also added 19,000 jobs in the past month, spread fairly evenly across computer and electrical product manufacturing, machinery manufacturing, and primary metal manufacturing.
Construction, retail trade, financial activities, leisure and hospitality, and the government were all sectors that saw little change in hiring. No sector lost a significant amount of jobs.
Job growth was spread across many different sectors this past month, including sectors that have been growing very strongly over the past twelve months, and those that have experienced more limited growth. As Americans are concerned about affordability, October’s job growth is an unexpected bright spot. Our policymakers must build upon these economic strengths as they look to restore affordable prices for consumers.