October jobs report puts employer pay and hiring plans under pressure

Which industries drove October hiring

Professional and business services led with 70,000 jobs, far above its 15,000 monthly average over the prior year, according to BLS. Health care added 42,000 jobs, ahead of its 31,000 average, and transportation and warehousing added 25,000.

Manufacturing added 19,000 jobs and is up 101,000 since a low in December 2025. NBC News reported that the data appear to include some AI-related manufacturing and construction work tied to the data center buildout, though BLS said construction employment changed little overall.

Payroll processor ADP also tracks private-sector hiring. Its National Employment Report, released Wednesday, found private employers added 86,000 jobs in October and professional and business services shed 27,000.

Pay is still losing to prices

Average hourly earnings rose 14 cents to $38.00 in October, up 3.1% from a year earlier, BLS said. Consumer prices rose 3.7% over the 12 months through September, BLS’ October 14 inflation report showed, so pay is still falling behind.

“So for employers, a stronger job market could raise the stakes on supporting financial health in the workplace, as workers may be more willing to make the move to a job with better benefits,” Danny Friel, lead economist at financial technology company Chime in New York, said in an emailed statement.