WASHINGTON (AP) -
U.S. employers added 171,000 jobs in October,
and hiring was stronger in August and September than first thought. The
solid job growth showed that the economy is strengthening slowly but
consistently.
The unemployment rate rose
to 7.9 percent from 7.8 percent in September, mainly because more people
began looking for work. The government uses a separate survey to
calculate the unemployment rate, and it counts people without jobs as
unemployed only if they're looking for one.
Friday's report was the
last major snapshot of the economy before Tuesday's elections. It's
unclear what political effect the report might have. By now, all but a
few voters have made up their minds, particularly about the economy,
analysts say.
Since July, the economy has
created an average of 173,000 jobs a month. That's up from 67,000 a
month from April through June. Still, President Barack Obama will face
voters with the highest unemployment rate of any incumbent since
Franklin Roosevelt.
The work force - the number
of people either working or looking for work - rose by 578,000 in
October. And 410,000 more people said they were employed.
The influx of people
seeking jobs "could be a sign that people are starting to see better job
prospects and so should be read as another positive aspect to the
report," said Julia Coronado, an economist at BNP Paribas.
Investors were pleased by
the news. The Dow Jones industrial average futures were flat before it
came out at 8:30 a.m. EDT. When stock trading began an hour later, the
Dow was up about 50 points.
The yield on the benchmark
10-year U.S. Treasury note climbed to 1.77 percent from 1.72 percent, a
sign that investors were moving money out of bonds and into stocks.
Friday's report included a range of encouraging details.
The government revised its
data to show that 84,000 more jobs were added in August and September
than previously estimated. The jobs gains in October were widespread
across industries. And the percentage of Americans working or looking
for work rose for the second straight month.
The economy has added jobs for 25 straight months. There are now 580,000 more than when Obama took office.
But there were also signs
of the economy's persistent weakness. Average hourly pay dipped a penny
to $23.58. In the past year, pay has risen just 1.6 percent. That has
trailed inflation, which rose 2 percent.
The number of unemployed increased 170,000 to 12.3 million.
The October jobs report was
compiled before Superstorm Sandy struck the East Coast earlier this
week and devastated many businesses.
The nascent housing
recovery is finally generating jobs. Construction companies added 17,000
positions, the most since January. Manufacturers added 13,000 jobs
after shedding workers in the previous two months.
Professional services such
as architects and computer systems providers also added jobs. So did
retailers, hotels and restaurants, and education and health care.
Government overall shed 13,000 jobs, after three months of gains.
The economy has shown many
signs of picking up a bit in recent weeks. Americans are buying more
high-cost items, like cars and appliances. Auto companies reported
steady sales gains last month despite losing three days of business to
the storm in heavily populated areas of the Northeast.
Yet businesses remain
nervous about the economy's future course. Many are concerned that
Congress will fail to reach a budget deal before January. If lawmakers
can't strike an agreement, sharp tax increases and spending cuts will
take effect next year and possibly trigger another recession.
American companies are also
nervous about the economic outlook overseas. Europe's financial crisis
has pushed much of that region into recession and cut into U.S. exports
and corporate profits.
The number of unemployed increased 170,000 to 12.3 million, pushing up the unemployment rate.
