U.S. Labor Market Sees 165,000 Job Increase in October, Wage Growth Below Inflation
The U.S. labor market added 165,000 jobs in October, surpassing many analysts' expectations. This follows upward revisions for August and September job gains, indicating stronger employment growth than initially reported. Industries such as healthcare (+41,600 jobs), manufacturing (+19,000 jobs), and architectural, engineering, and related services (+4,900 jobs) saw significant increases. Despite these gains, average hourly earnings rose by 3.1% in October. However, this wage growth has remained below the inflation rate since March 2026, after outpacing it from May 2023. As a result, inflation-adjusted, or 'real,' earnings have declined, leading to a reduction in the purchasing power of many consumers. Employment levels across various industries supported by Actalent remain higher compared to a year ago, despite some month-over-month fluctuations.