News update as of November 10, 2026. This reflects conditions at the time of writing and is for informational purposes only, not financial advice.
The US labor market came back to life in October. Employers added 165,000 jobs, according to the Bureau of Labor Statistics report released on Friday, November 6. That was nearly three times the consensus forecast of roughly 60,000 and a big jump from September’s weak reading.
The Key Numbers
- Nonfarm payrolls: +165,000 (forecast about 59,000–65,000)
- Revisions: August and September were revised up by a combined 84,000 jobs
- Unemployment rate: 4.1%, down from 4.2%
- Average hourly earnings: +0.4% on the month, +3.1% from a year earlier
- Participation rate: 61.9%
Not All Good News
Underneath the strong headline, some measures were softer. The broader U-6 underemployment rate, which includes part-time workers who want full-time jobs, rose to 7.9% from 7.6%. The average time people spend unemployed also climbed to 27.1 weeks, one of the highest readings in a decade outside the pandemic. That suggests hiring is strong in some areas while people who lose jobs are taking longer to find new ones.
Why It Matters for the Fed
Before the report, a weak jobs market was one of the main arguments for the Federal Reserve to pause. A strong payrolls number with rising wages removes much of that argument. Markets now price a better-than-80% chance of a quarter-point hike at the Fed’s December 8–9 meeting, which would take the target range to 4.00%–4.25%.
How the Dollar Reacted
The US dollar jumped after the release and the dollar index reached its highs of the week on Friday. The move did not last, though. On Monday the dollar fell more than 0.5% as falling oil prices and hopes for US–Iran talks lifted risk appetite. EUR/USD climbed back above 1.1200 and GBP/USD returned to around 1.3450.
Trader Takeaway
This report is a good example of why traders look beyond the headline. Revisions, wages and the unemployment rate all pointed the same way this time, which is why the first reaction was strong. But a single data release rarely sets the trend on its own. Inflation data, starting with October CPI, will decide whether the Fed hikes by 25 or even 50 basis points in December. Read our guide: How to Trade Around News Events Without Getting Burned.