REPUBLIKA.CO.ID, WASHINGTON - Employers stepped up hiring in October and the jobless rate ticked higher as more workers restarted job hunts, a hopeful sign for a lackluster economy that has been a drag on President Barack Obama's reelection chances.
Employers added 171,000 people to their payrolls last month, the Labor Department said on Friday. The government also said 84,000 more jobs were created in August and September than initially estimated.
The jobless rate edged a tenth of a point higher to 7.9 percent, but that was due to a surge of workers back into the workforce. Only people who have recently looked for a job count as unemployed.
"These are positive numbers," said Fabian Eliasson, vice president of currency sales at Mizuho Corporate Bank in New York.
The employment data was the last major report card on the economy before Tuesday's presidential election, which pits Obama against Republican Mitt Romney. While the rise in the jobless rate was expected, the increase in payrolls beat even the most optimistic forecast in a Reuters poll. U.S. stock index futures jumped following the data while prices for U.S. government debt fell. The report provides fodder for both candidates.
Even sustained monthly gains of 171,000 would likely bring down the jobless rate only slowly. A full recovery from the 2007-09 recession remains distant. The jobless rate, which peaked during the recession at 10 percent, remains about 3 percentage points above its pre-recession level. Romney has made the nation's feeble jobs market, which has plagued Obama since he took office in 2009, the centerpiece of his campaign.
The latest Reuters/Ipsos daily tracking poll showed Obama and Romney in a dead heat. Still, the political impact of the report will likely be muted as most voters' perceptions on the economy are likely firmly fixed by now. The persistently high unemployment rate makes it unlikely the Federal Reserve will lose its resolve to keep easy money policies in place until the economy shows more vigor.
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