Payroll growth accelerates in October 2026
Jobs growth
Total nonfarm payrolls grew by 165,000 in October, more than triple the 48,000 average monthly gain over the past year. Economists polled by Reuters had expected about 65,000, so the result was a sizable upside surprise. Private employers added 159,000 of those jobs, and government employers added 6,000.
Top industries
Professional and business services led with 70,000 new jobs, well above its 15,000 monthly average. Health care added 42,000, driven by hospitals (16,000) and home health care services (11,000), while transportation and warehousing rose 25,000, led by couriers and messengers at 17,000. Manufacturing added 19,000 and is up 101,000 since its low point in December 2025, with computer and electronic products gaining 7,000 and machinery and primary metals each adding 4,000.
Leisure and hospitality dipped 13,000, and BLS described employment in most other major industries as little changed. With production, logistics, and professional roles all adding jobs, employers hiring for light industrial and white-collar positions should expect more competition for qualified talent.
Unemployment
The unemployment rate edged down to 4.1% in October from 4.2% in September, and the number of unemployed people was little changed at 7.1 million. The rate has stayed between 4.1% and 4.3% since March. Long-term unemployment, those out of work for 27 weeks or more, was little changed at 2.0 million, or 27.6% of everyone unemployed. Reuters noted that historically low layoffs and a recent jump in job openings have raised the prospect of labor market tightening.
Wages
Average hourly earnings rose 14 cents, or 0.4%, to $38.00 in October, a larger gain than September's 5 cents, and are up 3.1% over the past year. Production and nonsupervisory employees saw a 12-cent increase to $32.75 an hour. Consumer prices rose 3.7% over the 12 months ending in September, so pay growth is still trailing inflation. Employers filling roles may want to benchmark offers against current local rates, since a 0.4% monthly gain still leaves pay behind prices.
Work week
The average workweek held at 34.4 hours in October. Manufacturing hours were unchanged at 40.5, and overtime edged up 0.1 hour to 3.1 hours. The workweek for production and nonsupervisory employees slipped 0.1 hour to 33.8 hours.
Temporary job trends
Temporary help services added 18,600 jobs in October, after BLS revised September to a loss of 5,600 from the 10,900 first reported. Staffing Industry Analysts and Bullhorn data showed staffing hours worked up 11% year over year in the week ending October 24, a new year-to-date high. Industrial staffing hours were up 17%, while office and clerical hours were down 7%. Rising industrial hours and renewed temp hiring show companies scaling output with flexible talent first, an approach Spherion's local teams can tailor to seasonal and project-based needs.
Labor force participation
Labor force participation edged up to 61.9% in October and has shown little net change since January, while the employment-population ratio held near 59.3%. The number of people who want a job but aren't counted in the labor force was little changed at 6.0 million and the count working part-time for economic reasons rose by 339,000 to 4.8 million. Reuters noted that economists estimate the economy needs at least 40,000 new jobs a month to keep pace with working-age population growth, down from roughly 150,000 in 2024.
Put together, October's hiring cleared that bar comfortably, even as some employees still want more hours. A steady pool of available workers means openings can be filled, and Spherion's recruiters can help match candidates to roles with the schedules and pay they're looking for.
What it means going forward
BLS revised August up by 53,000 and September up by 31,000, leaving the two months 84,000 higher than first reported. Layoffs remain low and third-quarter GDP grew at a 3.4% annualized rate, yet Reuters reported that the conflict with Iran, higher energy prices, and uncertainty about AI are keeping some employers cautious about adding headcount. With the fourth-quarter hiring season underway, employers have reason to plan early. Spherion's local teams review these numbers with clients each month and can help translate them into a fourth-quarter plan, from seasonal staffing to checking pay against the market.
Sources: Bureau of Labor Statistics, Reuters, Staffing Industry Analysts, USA Today
