Employment rose more than forecast in October, a sign businesses may be starting to look past what the Federal Reserve calls the disappointingly slow” U.S. recovery toward a faster pace of growth.
Payrolls climbed 151,000, and following a revised 41,000 drop the prior month that was smaller than initially estimated, Labor Department figures showed today in Washington. Private payrolls that exclude government agencies also gained more than forecast, while the jobless rate held at 9.6 percent.
The unemployment rate was forecast to stay at 9.6 percent, according to the median prediction of 80 economists surveyed by Bloomberg. Estimates ranged from 9.5 percent to 9.7 percent.
The report also showed gains in hours worked and earnings. Average hourly earnings increased 1.7 percent in October from the same month last year.
Private hiring, which excludes government agencies, rose 159,000 in October, the biggest gain since April. Economists projected an 80,000 gain, the survey showed.
Manufacturing payrolls unexpectedly decreased by 7,000 last month. Economists had projected a gain of 5,000.
Employment at service-providers increased 146,000, the first gain since May. Construction companies added 5,000 workers and retailers took on 27,900 workers.
Average hourly earnings increased to $22.73 from $22.68 in the prior month, today’s report showed.
Government payrolls decreased by 8,000. State and local governments reduced employment by 7,000, while the federal government trimmed 1,000 jobs.