US Economy Adds 165,000 Jobs in October

The U.S. economy created 165,000 jobs in October. This figure exceeded expectations and included new positions in construction and manufacturing linked to the rise of artificial intelligence. While tech giants have generated trillions of dollars in investment from the AI boom, average workers have seen limited direct benefit so far.

The unemployment rate dropped to 4.1% in October. This continues a long streak of historically low joblessness. Torsten Slok, chief economist at Apollo Global Management, noted in a Friday post that the U.S. labor market kept unemployment below 5% for 61 consecutive months through September 2026. He described the current period as potentially the longest sustained labor market strength in modern U.S. history.

Economists point to a lack of movement in the workforce as a counterpoint to the steady employment numbers. Diane Swonk, chief economist at KPMG, identified low turnover as the main issue. She stated that fewer people are joining the labor force, which contributes to the stagnation despite full employment figures.

Wages did not improve enough to keep pace with prices. Average hourly earnings rose 3.1% over the past year. This growth rate beat forecasts but remains well below the current inflation rate. Inflation stood at 3.7% according to the Consumer Price Index released on October 14.

Business price inflation is rising faster than consumer prices. This trend suggests that costs at supermarkets and retail stores will likely continue to climb for consumers in the coming months.

The data indicates a labor market that is strong in volume but constrained by slow wage growth and demographic shifts in workforce participation.