US employers add 165,000 jobs in October; unemployment falls to 4.1%

US employers added 165,000 jobs in October, and the unemployment rate dipped to 4.1%, according to a Labor Department report released Friday. The data follows a disappointing September and arrives days after Republicans suffered a major defeat in the 2026 midterms. The report showed 84,000 jobs added in August and September were revised upward, while 421,000 people entered the labor force. Hourly wages rose just 3.1% year-over-year, with professional services adding 70,000 jobs, healthcare 42,000, and factories 19,000, though hotels and restaurants cut 10,600. The job market has averaged 68,000 new jobs monthly this year, up from 9,700 in 2025 but below the 166,000 average of 2023-2024. Economists describe a "low-fire, low-hire" environment, while inflation-adjusted earnings fell for a sixth straight year, fueling voter frustration over the high cost of living.