The narrative of AI "taking jobs" is overturned: consulting and temp recruitment both rise, October data reveals U.S. employment is increasing, not decreasing

Odaily App notes that a rarely discussed category in last Friday’s blockbuster employment report is challenging the mainstream view that AI leads to job losses. At least for now, the data suggests that the US is creating jobs due to the AI boom, rather than losing them.

Another category also hints that strong employment data could persist.

According to the US Bureau of Labor Statistics report released last Friday, nonfarm payrolls increased by 165,000 in October. This unexpected hiring surge far exceeded Wall Street’s expectations—economists surveyed by Dow Jones had forecast just 59,000 additional jobs for the month.

Here are three unexpected insights from the report that investors may have overlooked.

Consulting Industry

Consulting hiring surged this month, pushing total employment in the sector to an all-time high.

From September to October, the number of management, scientific, and technical consultants increased by 17,300 jobs, the largest month-over-month gain in nearly two years. This category—tracked as a sub-sector of professional and business services by the Bureau—accounted for 25% of the total growth in the sector for the month.

More importantly, this workforce has added over 45,000 jobs in the past year. According to Bureau of Labor Statistics data, this growth pushed the total number of workers in this category above 1.9 million for the first time on record.

After years of rapid expansion during the pandemic, consulting hiring had essentially stalled since 2023. Wall Street has long questioned whether the rise of AI would suppress demand for such services.

These concerns have led to over half of Gartner (IT.US)’s market value evaporating in the past three years. Over the same period, Accenture (ACN.US) and FTI Consulting (FCN.US) have declined about 18% and 9%, respectively, while the S&P 500 has risen roughly 74%.

Now, some economists speculate that the recent hiring jump may be driven by companies bringing in consultants to help with AI adoption. Gartner forecasted in September that global AI spending will reach $2.7 trillion by 2026, an increase of nearly 50% year-on-year.

LPL Financial chief economist Jeffrey Roach stated, “Building AI and the need for companies to boost utilization will keep tech consultants employed.”

Roach called the consulting industry a highlight “worth closely watching” in October. He pointed out that these jobs also saw double-digit growth in the late 1990s, when companies were racing to incorporate new internet technologies into their operations.

So far, the data suggests that the jobs added to the labor market by AI may outnumber those replaced through automation. A Moody’s Analytics assessment found that since ChatGPT launched in November 2022, AI has created a net 786,000 jobs, in part thanks to data center construction.

Moody’s chief economist Mark Zandi wrote on social media Monday, “Wasn’t AI supposed to destroy jobs? The most pessimistic predictions warned of mass unemployment.” He continued, “This risk hasn’t vanished—AI-driven productivity gains could still shift into higher gear. But for now, AI is adding to job growth, not eroding it.”

Temporary Employees

Hiring of temporary workers also fueled growth, which could signal a heating labor market.

This subcategory saw 18,600 more payroll jobs in October, one of the largest monthly gains since 2022. It is also part of the professional and business services sector, representing 27% of the sector’s monthly increase.

The overall workforce in this category remains well below its 2022 peak. However, since last December, employment has grown by about 3%, now returning to levels last seen in April 2025—the month when President Trump’s tariff plans put corporate America on alert.

Economists view temp hiring as a leading indicator of labor market trends. The traditional belief is that companies hiring temporary workers often convert them to full-time employees later.

This may well be the case here, but the timing near year-end makes it harder to judge. The increase could be due to the approaching holiday shopping season—and if employers are adding staff for the holidays, they’re less likely to keep them in January. Such hiring typically doesn’t start this early, but the season has been creeping forward each year. The Bureau of Labor Statistics uses seasonal adjustments for this data, but if the trend itself shifts, adjustments may lag behind.

One clue that earlier holiday hiring may be happening comes from another group: couriers and messengers. This category is another gauge of holiday employment needs, and this month, a little over one in every ten new jobs came from this group.

Glenmede’s chief investment strategist and research officer Jason Pride noted that this category “bears watching for a reversal in the coming months.”

Election Spending

In the final few weeks of a high-cost election cycle, hiring related to political campaigns may also have driven up payrolls.

According to a Bureau of Labor Statistics analysis, employment in political organizations historically surges heading into midterm or presidential elections. The data shows such peak hiring typically occurs in October during election years. Nonfarm payrolls expanded in the months leading up to the 2018 and 2022 midterms.

But the exceptionally large campaign funding this cycle may be translating to more jobs than ever before.

OpenSecrets, an organization tracking political money, projects that the 2026 congressional elections will go down as the most expensive midterms on record. Billions in campaign spending could be turning into paid positions such as door-to-door canvassing, phone banking, or other election-related work.