US unemployment rate dips in October

(MENAFN- AFP) The US unemployment rate fell again in October even if job creation, weaker than expected, was lower than in September, according to data published Friday by the Labor Department.

The unemployment rate fell one-tenth of a percentage point to 5.8 percent, its lowest level since July 2008.

The economy churned out a firm 214,000 net new jobs, less than the 235,000 expected.

The Labor Department also revised upward by a total of 31,000 the number of jobs created in the previous two months, for 256,000 in September and 203,000 in August.

The two key figures, jobs created and the unemployment rate, appear to diverge because they arise from two separate Labor Department surveys, one of business establishments and the other of households.

"Anyone disappointed by the October number, which came in below expectations... needs to bear in mind that payrolls have now risen by more than 200,000 in each of the past nine months," said Chris Williamson of Markit.

"This means that, so far this year, the economy has added some 2.285 million jobs, of which 2.225 million were in the private sector."

For the first time in six years, the number of unemployed fell below nine million, to 8.995 million.

The labor force participation rate, which counts those with jobs and those actively seeking jobs, rose barely to 62.8 percent in October.

The participation rate had fallen sharply since the 2008 financial crisis because of both demographic and cyclical reasons, helping to push down the overall unemployment rate.

Over 12 months, the world's leading economy has generated an average 222,000 jobs a month, according to Erica Groshen of the Bureau of Labor Statistics.

There was a sharp 683,000 surge in the overall number of people with jobs, well over the number of new entrants and returnees to the active labor force, 416,000, which helped push down the jobless rate, according to Paul Ashworth of Capital Economics.

Ashworth pointed out that at 5.8 percent, the unemployment rate was nearing what the Federal Reserve considers "full employment" of between 5.2 percent and 5.5 percent.

The level of long-term unemployed, those jobless for more than six months, fell modestly to 2.9 million, representing 32 percent of all unemployed.

The number of people working part time because they cannot find full-time work was virtually unchanged at 7 million.

The report showed unemployment remains higher among African-Americans, 10.9 percent, than whites, 4.8 percent.

The gain in jobs was highest in the services sector, especially in restaurants, retailing and health care.

Bars and restaurants added 42,000 new jobs in October compared with the average of 26,000 a month over the past year.

The retail trade added 27,000 new positions and health care gained nearly as many, with 25,000 additional jobs.

Employment in the manufacturing sector rose by 15,000 positions. The transport and logistics sector gained 13,000, and construction, 12,000.

Those sectors which showed a slowdown in job creation include mining, the government and the information sector, where the number of positions declined.

The average number of hours worked per week rose by 0.1 hour to 34.6 hours, and the average hourly pay rose 3 cents to $24.57.