US employers added a surprising 165,000 jobs in October; unemployment rate dipped to 4.1%

Jobs US employers added a surprising 165,000 jobs in October; unemployment rate dipped to 4.1% The report comes after the Republicans' stunning defeat in the 2026 midterms Watch ABC News live news stream and get 24/7 latest, breaking news coverage, and live video. Friday, November 6, 2026 2:26PM Share The U.S. job market likely bounced back last month from a disappointing September . Layoffs are low, and most Americans enjoy unusual job security . But hiring has probably remained too modest to deliver much relief to those looking for work. And wage gains haven’t been keeping up with persistently high inflation . Labor Department revisions added 84,000 new jobs in August and September. The unemployment rate fell even though 421,000 people entered the labor force. But hourly wages rose a meager 3.1% from October 2025, with many families struggling to keep up with inflation. Professional and business services – a broad category of administrative and managerial workers – added 70,000. Healthcare companies hired nearly 42,000. Factories added 19,000 jobs. But hotels, restaurants and bars cut 10,600. The jobs report arrives three days after voters handed a stunning defeat to President Donald Trump and his Republican Party in midterm elections. Frustrated with the state of the economy — and especially the high cost of living – Americans handed full control of the U.S. Congress to the Democrats. Yet the American economy and job market have proven resilient in the face of a series of shocks — Trump’s double-digit taxes on imports and the war with Iran, which has driven U.S. gasoline prices above $4 a gallon and pinched family budgets. Gross domestic product — the nation’s output of goods and services — advanced at a sprightly 3.4% annual pace from July through September, lifted by strong consumer spending and booming investment in artificial intelligence. E-bike driver killed in North Side crash, Chicago police say 1 hour ago Tow truck driver shot in Logan Square, Chicago police say Family remembers Gary man killed days before birthday in crash involving off-duty police officer The job market has been solid but unspectacular. So far this year, employers — companies, government agencies and nonprofits — have added an average of 68,000 jobs a month, including a disappointing 29,000 last month . That is modest by historic standards but an improvement over 2025 when monthly job creation averaged 9,700. That was the weakest performance outside of a recession since 2002. Last year, high interest rates and President Donald Trump’s unpredictable trade policies discouraged hiring. Despite recovering this year, hiring remains well below the average of 166,000 monthly jobs created in 2023 and 2024, let alone the 491,000 a month recorded during the 2021-2022 hiring boom that followed COVID-19 lockdowns. Economists see a “low-fire, low-hire’’ environment in which employers are reluctant to let go of existing workers but aren’t in any hurry to hire new ones. Young people entering the workforce, or those who’ve lost their jobs, can struggle to find work. The United States doesn’t need as many new jobs as it once did to keep the unemployment rate from rising. That is because baby boomer retirements and Trump’s immigration crackdown mean fewer people are competing for work. In late 2023, the so-called break-even point was around 166,000 new jobs a month. It’s now just over 5,000, according to an estimate by Yale University’s Budget Lab, which drew on an earlier Federal Reserve report. Meanwhile, rising prices have pinched pay for millions of Americans. After taking inflation into account, average hourly earnings fell 0.7% in September – the sixth straight year-over-year drop and one explanation for voters’ fury at the polls Tuesday. Report a correction or typo Copyright © 2026 by The Associated Press. All Rights Reserved. Related Topics CAREERS JOBS JOBS HIRING POLITICS PERSONAL FINANCE I-Team Quick Tip: Holiday job scams Netflix is laying off 6% of its workforce in biggest round of job cuts at streaming giant in years ABC7 Chicago job: WLS Maintenance Engineer Trump administration suspending Microsoft from green card program Watch Live ON NOW E-bike driver killed in North Side crash: CPD 1 hour ago Tow truck driver shot in Logan Square: CPD NW IN man killed days before birthday in crash involving off-duty cop Community mourns after 4 family members killed in Rogers Park fire See exclusive look at Zoo Atlanta's giant pandas ahead of public debut 1 hour ago Welch will not seek new term as speaker after IL Dems call for change After cancer surgery, Pope Leo embarks on Latin America trip 3 hours ago 3 shot after shots fired into Englewood apartment: CPD 3 hours ago