The U.S. economy added 165,000 jobs in October, exceeding forecasts of roughly 65,000, according to figures cited in the administration’s report on the labor market. The unemployment rate fell to 4.1%.
Manufacturing employment increased by 19,000 positions, the industry’s strongest monthly rise since 2023. Reported payroll gains for August and September were revised upward. The Trump administration credited its tariffs, tax reductions and domestic investment policies for encouraging manufacturers to expand production.
Manufacturing added 19,000 jobs in October, according to the administration’s cited figures, the strongest monthly increase since 2023. The White House argued that tariffs, business tax reductions and domestic manufacturing investment were helping generate demand for American workers.
Earlier monthly reports were revised higher. August job growth was revised to approximately 186,000 and September to 60,000, adding a combined 84,000 jobs to prior estimates. Private employers accounted for the overwhelming majority of October’s increase.
The report indicated firmer wage growth as well. Average hourly earnings increased 0.4% in October, while the jobless rate slipped to 4.1%. Those indicators suggest employers continued hiring despite uncertainty about inflation and interest rates.
President Trump’s administration has promoted tariffs and tax incentives intended to encourage companies to locate production domestically. It says more than 1.25 million private-sector jobs have been added since Trump returned to office in January 2025.
Industry data cited by the White House also highlighted increased reshoring activity. A survey found that 36% of equipment manufacturers had relocated, or were relocating, production, while 63% reported capital investments to expand their American operations.
The Institute for Supply Management reported another month of expansion in manufacturing. Other data showed a narrower U.S. trade deficit in September and increased capital-goods imports, which can include equipment used for factories and infrastructure.
The October report came after third-quarter gross domestic product expanded at a 3.4% annual rate. The administration cited that growth and improving payroll figures as evidence of a stronger industrial economy.
Economists cautioned that a single monthly report does not establish the effect of any particular government policy. Hiring can also reflect business cycles, consumer demand, interest rates and seasonal changes. Strong labor-market results may complicate decisions by the Federal Reserve about when to reduce borrowing costs.
The report offered evidence of resilience in hiring, although monthly job statistics alone cannot determine how much of the improvement resulted from individual federal policies. Stronger employment and wage gains also may influence Federal Reserve decisions on interest rates.
By: Montana Newsroom wire
