Unemployment among American veterans declined to 2.9% in October, down from 3.6% the previous month, as employers added 165,000 jobs nationwide, according to Labor Department figures released Friday. The veteran unemployment rate was also substantially below the 4% rate recorded among nonveterans.

The broader national unemployment rate edged down to 4.1% from 4.2% in September. October's job growth significantly exceeded economists' expectations, which had generally ranged from 60,000 to 65,000 new positions.

Employment gains varied among veteran demographics. Female veterans recorded a 3.9% unemployment rate, slightly higher than the 3.8% rate among female nonveterans. Male veterans fared better, with unemployment at 2.5%, compared with 3.9% for nonveteran men.

Veterans with disabilities continued to face greater employment challenges. Their average unemployment rate reached 6.6% over the 11-month period ending in October, twice the 3.3% rate among veterans without disabilities.

Labor force participation among veterans also declined slightly, falling from 48.1% in September to 47.6% in October. The nonveteran participation rate moved in the opposite direction, increasing from 64.1% to 64.2%.

Several major industries contributed to October's hiring growth. Professional and business services added 70,000 jobs, while healthcare employment increased by 42,000, according to the Bureau of Labor Statistics. The gains indicated stronger hiring across both professional occupations and healthcare.

Despite concerns about inflation continuing to erode wage gains, the October report showed improvement across several measures of the labor market, including increased workforce participation nationwide.

Veteran employment programs also continued reporting success in helping former service members transition into civilian careers. The Wounded Warrior Project's Warriors to Work program, which assists veterans seeking employment, reported continued success placing participants in jobs.

The figures provide an encouraging picture of veteran employment, particularly among men, while underscoring persistent challenges for female veterans and former service members with disabilities.