U.S. employment increased more than expected in October as the headwind from the surge in COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter.
But the brightening outlook was somewhat clouded by millions of unemployed Americans who remained at home even as companies are boosting wages, generous government-funded jobless benefits have ended and schools have reopened for in-person learning. The labor force is down 3 million from its pre-pandemic level.
The Labor Department's closely watched employment report's survey of establishments on Friday showed nonfarm payrolls increased by 531,000 jobs last month. Data for September was revised higher to show 312,000 jobs created instead of the previously reported 194,000. Economists polled by Reuters had forecast payrolls rising by 450,000 jobs.
Employment is 4.2 million jobs below its peak in February 2020. Job growth has averaged 582,000 per month this year.
UNEMPLOYMENT RATE FALLS
Details of the smaller survey of households, from which the unemployment rate is derived were mixed. The unemployment rate fell to a 19-month low of 4.6% from 4.8% in September. The number of people unemployed for 27 weeks or more dropped 357,000 to 2.3 million. They accounted for 31.6% of the 7.4 million people officially unemployed last month.
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