A smaller-than-expected 56,000 new US jobs were created in October despite the fading impact of hurricane Katrina, while total job growth over the two prior months was revised lower, a US Labor Department report today showed.
The national unemployment rate eased to 5 per cent from 5.1 per cent in September as the national labor force shrank for the first time since January.
Wall Street economists had forecast that 100,000 jobs would be created last month and the unemployment rate would be unchanged. The department revised its figures for August and September. It said that 148,000 jobs were created in August instead of 211,000 that it previously thought and that 8,000 jobs were lost in September instead of 35,000.
As a result, the data shows 36,000 fewer jobs were created over the two months than the department previously estimated. Bureau of Labor Statistics Commissioner Kathleen Utgoff said the relatively weak increase in jobs last month could not be blamed on Hurricane Katrina, the storm that devastated the Gulf Coast region in late August.
"Rather, job growth in the remainder of the country appeared to be below trend in October," Utgoff said. Average hourly earnings gained to $16.27 from $16.19 in September. Notably, some 49,000 jobs were created in goods-producing industries last month, a bounceback from September when 13,000 were lost.