US payrolls added 165,000 jobs in October strengthening rate hike case

United States employers added 165,000 nonfarm payroll jobs in October, according to data from the Bureau of Labor Statistics reported by Realtor.com Research, Zillow Research, MPA Magazine, and Commercial Observer. MPA Magazine reported that the gain was nearly triple the Wall Street forecast of 59,000. Additionally, Zillow Research and Realtor.com Research reported that employment gains for August and September were revised upward by a combined 84,000 jobs. [1][2][4][5]

The Bureau of Labor Statistics report noted that the national unemployment rate moved to 4.1 percent, beating the consensus estimate of 4.2 percent, MPA Magazine reported. Zillow Research noted that job growth was broad-based, led by professional and business services with 70,000 additions, healthcare and social assistance with 55,000, and transportation and warehousing with 25,000. Temporary help services employment added 18,600 positions, according to Zillow Research. [2][4]

Average hourly earnings rose 0.4 percent during the month and 3.1 percent on an annual basis, MPA Magazine reported. Realtor.com Research noted that nominal wage growth of 3.1 percent continues to trail inflation. [1][4]

The stronger-than-expected labor data has sharply raised expectations for central bank action. MPA Magazine reported that the probability of a Federal Reserve rate hike at its December 8 to 9 meeting pushed close to 80 percent following the release. MPA Magazine also reported that analysts at the Mortgage Bankers Association and Oxford Economics back a December rate increase. [4][7]

As FTMQ Real Estate reported earlier, United States nonfarm payrolls had increased by only 29,000 in September 2026 before being revised. Commercial Observer reported that the September additions were later revised to 60,000 jobs. [5][15][16]