The U.S. economy added a surprising 165,000 jobs in October, including some in construction and manufacturing related to artificial intelligence.
U.S. workers have so far benefited relatively little from the artificial intelligence boom, which has driven stocks higher and fueled trillions of dollars in spending by the world’s top tech giants.
The unemployment rate fell to 4.1% in October, remaining close to historical lows.
“As of September 2026, the U.S. labor market unemployment rate has remained below 5% for 61 consecutive months,” Apollo Global Management chief economist Thorston Slock wrote on Friday.
He noted that the current trend “is shaping up to be the longest period of sustained labor market strength in modern U.S. history.”
While the solid numbers reflect good employment conditions across the country, economists also say they reflect a stagnation.
“The problem is low turnover,” said Diane Swonk, chief economist at KPMG. “Fewer people are entering the labor market.”
However, there was no significant improvement in wage growth last month. Average hourly earnings are up 3.1% from a year ago and continue to be well below the rate of inflation.
As of the latest Consumer Price Index release on October 14, inflation was 3.7% and rising. Business inflation is rising faster, which could be a sign of what’s to come for grocery and retail consumers.
Friday’s report also showed strong upward revisions to recent employment data.
Net employment growth in August was revised to 53,000, rising from 133,000 to 186,000. The U.S. Bureau of Labor Statistics said in a statement that jobs rose by 31,000 jobs in September, from 29,000 to 60,000.
Friday’s jobs report also suggested that the country’s massive construction of artificial intelligence data centers could support at least some construction and manufacturing jobs.
BLS data showed manufacturing job openings increased by 19,000 in October. Since its recent low in December 2025, the industry has added more than 100,000 new jobs.
The agency pointed out that among manufacturing industries, computer and electronic manufacturing, machinery manufacturing and so-called “primary metal manufacturing” led the gains.
Nonresidential construction jobs also increased by nearly 3,000 jobs in October, which may indicate demand for data center positions.
In contrast to the commercial construction industry, the residential construction and contracting industry shed more than 15,000 jobs last month. High interest rates have paralyzed the residential real estate market and reduced demand for refinance loans typically used for home improvements.
Other industries that have been largely driving U.S. job growth for years also saw strong gains this month. The health care industry added 42,000 jobs, which the Bureau of Labor Statistics said was higher than the monthly average over the past year.
The professional and business services industry added 70,000 jobs, according to the agency’s classification, topping the 15,000 average monthly job gains over the past year.
Retailers also appear to be off to a strong holiday hiring start, with companies classified as “department retailers” adding more than 18,000 positions.
Friday’s data also supports the Federal Reserve’s case for raising interest rates at its December 8-9 meeting. After the U.S. Bureau of Labor Statistics released data, the likelihood of a rate hike in December jumped to nearly 80%.