US economy adds 171k jobs
WASHINGTON, USA — US employers added 171,000 jobs in October and hiring was stronger over the previous two months than first thought, pointing to a slowly improving jobs picture that could enhance President Barack Obama’s re-election chances. The unemployment rate, however, inched up to 7.9 per cent from 7.8 per cent in September as more workers resumed job hunts.
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, Obama will face voters in Tuesday’s election with the highest unemployment rate of any incumbent since President Franklin D Roosevelt. The rate rose in October mainly because more Americans began seeking work and were counted as unemployed. The government counts people without jobs as unemployed only if they’re looking for one.
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.
The workforce — 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 am EDT. When stock trading began an hour later, the Dow was up about 50 points.
The yield on the benchmark 10-year US Treasury note climbed to 1.77 per cent from 1.72 per cent, 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 per cent. That has trailed inflation, which rose 2 per cent.
— AP