October US Nonfarm Payrolls Rise More Than Expected, Unemployment Rate Lower

08:44 AM EST, 11/06/2026 (MT Newswires) -- The October employment report showed nonfarm payrolls rose by 165,000, well above the 70,000 jobs increase expected in a survey compiled by Bloomberg as of 7:05 am ET, while September payrolls were revised upwards to a 60,000 increase and August payrolls were revised upwards to a 186,000 increase, for a net upward revision of 84,000 jobs. Private payrolls rose by 159,000 in October after a 78,000 increase in September, well above the increase of 65,000 private jobs expected. The professional and business services sector added 70,000 jobs while the health care and social assistance sector added 55,100 jobs, but leisure and hospitality jobs decreased by 13,000. The unemployment rate fell to 4.1% in October from 4.2% in September, compared with an unchanged 4.2% rate expected, while the labor force participation rate rose to 61.9% from 61.8% in September and the size of the labor force expanded on a gain in household employment. Household unemployment declined. Hourly earnings rose by 0.4%, faster than the 0.3% gain expected, and following a 0.3% increase in September. Hourly earnings were up 3.1% year-over-year, down from a 3.2% rate in September. The average workweek remained at 34.4 hours, as expected. The monthly employment report released by the Bureau of Labor Statistics consists of two separate surveys and is considered the most important data release for the month. The survey of businesses measures the levels of employment and wages and the length of the average workweek, broken down by industry. The survey of households measures the number of people working or looking for work, the unemployment rate, those that have left the workforce and reasons for part-time work. Market reaction can be mixed, particularly when the two surveys disagree. A strong increase in employment or a decline in the unemployment rate is generally a positive for stocks as sign of a strong US economy, but bonds would react negatively to the same news, particularly if wages rise sharply at the same time.