Blockbuster October jobs report keeps Fed rate hike in play for December

Yahoo Finance · Jennifer Schonberger · 2026-11-06 13:53 UTC

Fed officials are already focused on higher inflation.

A much stronger-than-expected October jobs report solidifies expectations that the Federal Reserve will raise interest rates in December, as officials are already focused on higher inflation.

The Bureau of Labor Statistics report released Friday showed that 165,000 jobs were created in October, compared with expectations for around 70,000, as the unemployment rate edged down to 4.1%, compared with expectations for 4.2%. That's much higher than the average monthly gain of 48,000 over the past 12 months and well above the roughly 30,000 jobs needed to hold employment steady. Labor force participation inched up to a hair above expectations at 61.9%.

Job gains in both August and September were also revised higher by 84,000. The bulk of jobs added were in the sectors of professional and business services, healthcare, and transportation and warehousing. Manufacturing added 19,000 jobs.

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