U.S. employers stepped up hiring in October with the latest October payroll number from the Labor Department showing that 171,000 jobs were added in the U.S. economy, surpassing most economists’ estimates and adding momentum to the U.S. economy.
A net total of 171,000 workers were added to U.S. payrolls in October after a revised 148,000 gain in September that was higher than first estimated.
The jobless rate moved one tenth of a point higher to 7.9 percent as a result of a more workers entering the U.S. workforce.
Retailers added the most workers to U.S. payrolls since April 2011 while government payrolls decreased by 13,000.
The construction industry witnessed a 17,000 increase in jobs, the largest increase since January in the midst of an improving housing market.
The jobless rate when Obama took office in January 2009 was 7.8 percent rate. It remained above 8 percent for 43 months before September.
The better than expected employment October report shows that the U.S. economy is showing increasing resiliency and momentum in the midst of a heated election season where most political polls show a close presidential race.
John Silvia, Chief Economist at Wells Fargo, spoke positively about the better than expected October jobs report and the U.S. economy on Bloomberg’s Market Makers.
“The dollar is stronger against the yen and treasuries are selling off, telling us that the market is now shifting its expectations away from perhaps the recession scenario or the possibility of recession or a big slowdown to one of more moderate economic growth and I think that the numbers are consistent with 1.5 to 2.0 percent GDP for the second half of this year.
This week has shown stronger economic data.
U.S. economic reports on Thursday showed gains in manufacturing, consumer confidence, and auto sales.
Consumer Confidence rose to 72.2 in October from 68.4 in September; the strongest level since February 2008.