The increase in the unemployment rate was widely expected, but the 55,000 jobs created was stronger than anticipated, and well above the modest 8000 increase in September.
The participation rate increased by 0.2 percentage points to 67 per cent, based on the monthly Australian Bureau of Statistics labour force survey.
"With employment increasing by 55,000 people, and the number of unemployed people increasing by 28,000, the unemployment rate rose to 3.7 per cent in October," ABS head of labour statistics Bjorn Jarvis said.
"This was back to around where it had been in July and August."
The ABS has recorded a 17,000 lift in full-time employment and a 37,900 increase in part-time jobs.
Forecasters had a 24,000 lift in employment pencilled in and the unemployment rate ticking higher to 3.7 per cent.
Economists have been focused on trends in the series, which has been more volatile than usual.
The statistics bureau noted that the bigger increase in employment in October followed a smaller boost in September.
"Looking over the past two months, these increases equate to average employment growth of around 31,000 people a month, which is slightly lower than the average growth of 35,000 people a month since October 2022," Mr Jarvis said.
Monthly hours worked increased by 0.5 per cent in October, similar to the employment growth of 0.4 per cent.
ANZ senior economist Blair Chapman said the numbers were stronger than most would have expected.
Mr Chapman was expecting the October labour force data to capture a boost in employment as the electoral commission staffed voting booths for the referendum on an Indigenous voice to parliament.
"We would have expected it to all be part-time, but that full-time gross suggests that it's more than just the voice referendum boosting employment in the month," he told ABC TV.
The bureau recorded a 17,000 lift in full-time employment and a 37,900 increase in part-time jobs.
The jobs market has held up well as economic activity tracks below trend, though more slackness is an expected consequence of higher interest rates.
The Reserve Bank of Australia is expecting the unemployment rate to average about 3.8 per cent in the December quarter, before drifting up gradually to 4.3 per cent by mid 2025.
Mr Chapman said there was a lot of noise in the monthly labour force data, but it "might have the RBA a little worried, but not too worried".
Oxford Economics Australia head of macroeconomic forecasting Sean Langcake said it was another "relatively strong print".
"(It) shows the labour market continues to defy the gravity of slowing activity and softening forward indicators," he said.
Mr Langcake said the labour market was still tight enough to generate strong wage growth that will bolster the case for another rate hike in December.
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