The US economy added 638,000 jobs in October, and the unemployment rate fell to 6.9%, the Department of Labor announced Friday, as both data beat the market expectations.
While the market estimate for nonfarm payrolls was an increase of 600,000 for October, job additions for September were revised up by 11,000 from 661,000 to 672,000, according to data by the Bureau of Labor Statistics.
The unemployment rate beat the market expectation as the consensus for it was to decline to 7.7% in October, while this level stood at 7.9% in September.
“These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it,” the department said in a statement.
“In October, notable job gains occurred in leisure and hospitality, professional and business services, retail trade, and construction. Employment in government declined,” it added.
Although October marked the sixth consecutive monthly decline in unemployment, the world’s largest economy is still struggling with its labor market where only half of 22 million people who lost their jobs in March and April could find employment since then.
The department said the number of unemployed people in October fell by 1.5 million from the previous month to 11.1 million.