Trump Gets Major Jobs Report Boost After Midterms Rattle Markets - Newsweek
The latest employment numbers from the Department of Labor show that the U.S. jobs market may be on stronger footing than some believed just prior to this week's midterm elections.
On Friday morning, the Bureau of Labor Statistics (BLS) announced that the economy had added 165,000 jobs in October, up from September’s originally reported total of 29,000. Ahead of the release, analyst forecasts pointed to the addition of 65,000 jobs—considered weak by recent historical standards.
September's total was revised up by 31,000 to 60,000, and August's by 53,000 to 186,000—meaning the past two months' results were 84,000 stronger than previously believed.
Employment increased in professional and business services, healthcare, and transportation and warehousing, according to the BLS. The unemployment rate ticked down to 4.1 percent in October from 4.2 percent in September.
Newsweek has reached out to the White House via email for comment.
Though arriving after the midterms, the jobs report comes at an opportune time for the Trump administration, which has been trying to quell widespread economic concerns.
As well as frustrations with the ongoing Iran war, the cost-of-living and inflation, the midterm results were seen by many as voters’ rejecting President Donald Trump’s policies. Democrats won control of the U.S. House and Senate, giving the party the power to obstruct Trump’s legislative agenda and investigate his administration for the final two years of his second term.
It also follows significant unrest in financial markets. This week witnessed a sharp selloff—with all U.S. indexes and tech stocks in particular dropping on Thursday. Market analysts have chalked this up to the election and investor concern that the new Congress could push for tighter regulation on AI infrastructure and data center expansion.
The numbers also arrive during an unusually volatile stretch for the American labor market. Large swings between monthly readings have raised questions over the impact of AI on hiring and firing, how the Federal Reserve should approach its employment mandate amid inflationary pressures, and whether September’s poor showing was an aberration or evidence of a structural slowdown.
Meanwhile, a more important report will be the next inflation reading from the BLS, which is scheduled to be released on Tuesday morning.
Outside of August, October’s was the strongest nonfarm payrolls reading since March, when the economy added 214,000 jobs. So far in 2026, the economy has averaged a gain of 86,100 jobs each month, which compares to averages of 9,200 and 108,800 in 2025 and 2024, respectively.
“This is a strong report and a real sign of momentum in the labor market,” Ger Doyle, regional president for North America at the workforce solutions firm ManpowerGroup, said.
“Employers are adding jobs faster than many expected, and we’re seeing that same improvement in our real-time hiring data,” he wrote in a note shared with Newsweek on Friday. “The question now is how far that strength reaches. Demand is clearly picking up in parts of the economy, but we need to see it spread into more industries and create more opportunities for workers before we call this a broader hiring recovery.”
By industry, healthcare was again a standout performer. The sector added 42,000 jobs in October, compared to the average monthly gain of 31,000 over the previous 12 months.
Professional and business services was the winner, however, with nonfarm payrolls rising by 70,000 last month versus the sector’s own average of 15,000 during the same period.
Transportation and warehousing and manufacturing also enjoyed outsized gains in October.
Friday's report has been broadly viewed as an encouraging sign for the labor market and the wider economy.
"This is a strong jobs report, and, with revisions and a few positive trends potentially developing, it’s not an obvious one-off," economist Jared Bernstein, former Council of Economic Advisers chair under Joe Biden, wrote on Substack. "We’ll need more data to be sure, but the job market is looking more solid than it did a few months ago."
Heather Long, chief economist at Navy Federal Credit Union, described it as a "blowout jobs report" and "strong on every level." However, she notes noted on X that employment has not been the central economic concern in the U.S. over the past few months, and that the "great" report "doesn't erase this painful fact: Inflation has wiped out all wage gains for 7 straight months."
Contact Newsweek editors for this story: Tobias Meyjes and Anthony Murray.
