October Jobs Report Looks Stronger, but Payroll Estimate May Be Revised

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WASHINGTON - eTradeWire -- The Bureau of Labor Statistics reported today that total nonfarm payroll employment increased by 165,000 jobs in October, while the unemployment rate fell to 4.1 percent from 4.2%.

"The October report looks strong on the surface, but we do not believe the headline payroll number necessarily provides a complete picture of labor-market conditions," said William Michael Cunningham, economist and founder of Creative Investment Research. "The 165,000 estimate is preliminary, and there remains a meaningful possibility that it will be revised downward."

Professional and business services added 70,000 jobs, health care added 42,000, and transportation and warehousing added 25,000. Together, those three sectors accounted for most of the reported employment increase.

At the same time, employment showed little change across a number of major industries, including construction, wholesale trade, retail trade, information, financial activities, leisure and hospitality, and government.

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Underemployment Raises Additional Concerns

Other indicators in the report suggest that the labor market remains uneven.

The number of people working part time for economic reasons increased by 339,000 to 4.8 million in October. These workers would have preferred full-time employment but were working fewer hours because of weak business conditions or difficulty finding full-time jobs.

Nearly 2 million people remained long-term unemployed, representing 27.6 percent of all unemployed workers.

"A sharp increase in involuntary part-time employment is not consistent with an unequivocally strong labor market," Cunningham said. "It is another reason to look beyond the headline payroll number."

Black Unemployment Remains Elevated

The Black unemployment rate improved from 7.0 percent in September to 6.6 percent in October, but remained far above the 3.7 percent unemployment rate for White workers.

The persistence of this gap remains important for Black workers and Black and minority-owned businesses, particularly because weaker employment conditions can translate into lower household income, softer consumer demand, and greater financial stress in minority communities.

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Revisions Remain Central to the Story

Creative Investment Research noted that the latest report revised August and September payroll estimates upward. August was revised from +133,000 to +186,000, while September was revised from +29,000 to +60,000, increasing the combined estimate by 84,000 jobs.

Those revisions underscore a larger point: initial monthly payroll estimates are not final.

BLS states that the establishment survey revises initial monthly estimates twice as additional employer responses and recalculated seasonal adjustment factors become available. The agency also notes that the 90-percent confidence interval around the monthly change in total nonfarm payroll employment is approximately plus or minus 122,000 jobs.

"The economy may be stronger than it appeared in September, but we would not treat the October 165,000 payroll figure as the final word," Cunningham said. "The quality and durability of employment growth remain open questions."

For more, see: https://www.impactinvesting.online/2026/11/october-jobs-report-looks-strongerbut.html

Source: Creative Investment Research
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