Actalent Labor Market and Economy Report: A Look at Trends in October 2026

Eliza Hetrick, Actalent Market Research Analyst

U.S. employment increased by 165,000 jobs in October, exceeding many analysts’ expectations.

Revisions to prior months suggest stronger job gains than initially reported. August's employment gain was revised upward from 133,000 to 186,000 jobs, while September’s gain was revised from 29,000 to 60,000.

Among the industries Actalent supports, strong gains were recorded in healthcare (+41,600 jobs), manufacturing (+19,000 jobs), architectural, engineering and related services (+4,900 jobs), scientific research and development services (+4,100 jobs), motor vehicles and parts manufacturing (+4,100 jobs) and aerospace products and parts manufacturing (+1,900 jobs). Employment was relatively unchanged in utilities and medical device manufacturing, while construction and pharmaceutical manufacturing experienced small losses. Despite month-over-month fluctuations, employment levels in all these industries remain higher compared to a year ago.

Average hourly earnings rose 3.1% in October. While wage growth outpaced inflation from May 2023 through March 2026, it has remained below the inflation rate since then. As a result, inflation-adjusted, or "real,” earnings have declined, reducing the purchasing power of many consumers.

Labor Market Overview: October 2026

165K
Jobs Gained in October

U.S. employment increased by 165,000 jobs in October, following a gain of 60,000 jobs in September. On a year-over-year basis, total employment is up just 0.6%.

61.9%
Labor Force Participation Rate

The labor force participation rate increased for the third consecutive month, rising from 61.8% in September to 61.9% in October. While the last three months have shown subtle improvement, the percentage of the population who is working or actively seeking work still lags the rate recorded throughout 2025.

4.1%
Unemployment Rate

The unemployment rate fell slightly from 4.2% in September to 4.1% in October. Unemployment rates close to 4.0% suggest a relatively limited supply of available job seekers.

1.6M
September Layoffs

Layoffs slightly declined from 1.8 million in August (revised up from 1.6 million) to 1.6 million in September. The number of quits increased from 3.1 million to 3.4 million. Quits and layoffs data lag one month behind other employment data.

Source: Bureau of Labor Statistics' Employment Situation Summary

Hear From Our Expert

"October's employment gains reinforce a trend we've seen throughout much of 2026: organizations continue to invest in the specialized talent required to execute critical work, even as overall hiring remains selective. Strong demand across healthcare, manufacturing, engineering, scientific research and aerospace reflects the ongoing need for technical expertise that supports innovation, modernization and operational performance. As employers finalize 2027 workforce plans, success will depend not only on identifying future talent needs but also on understanding where those skills exist and how competitive those labor markets have become. In many specialized fields, talent availability remains far tighter than the overall unemployment rate would suggest."

Glekeria "GK" Kalathas