US Sees Huge Spike In New Jobs

Written By Unknown on Jumat, 02 November 2012 | 20.48

The United States economy has added 171,000 net new jobs in October, a figure much higher than expected by analysts.

The new hiring figure was stronger than first thought over the previous two months.
Simultaneously, the unemployment rate inched up to 7.9% from 7.8% in September – due to the increased size of the work force.

The figures were released as part of the US Labour Department's last look at hiring before Tuesday's presidential election.

It sketched a picture of a job market that is gradually gaining momentum after nearly stalling in the spring.

Most analysts had expected the rise in the unemployment rate, but the job growth far outpaced the 125,000 forecast.

Since July, the economy has created an average of 173,000 jobs a month, up from 67,000 a month from April through to June.

However President Barack Obama will face voters with the highest unemployment rate of any incumbent since Franklin Roosevelt.

The rate ticked up because more people without jobs started looking for work and the government only counts people as unemployed if they are actively searching.

According to analysts from IHS Global Insight, damage of between $30bn (£18bn) to $50bn (£30bn) in economic losses could drop nominal GDP by 0.2% to 0.3%.

The Wall Street Journal described it as "naïve" a view held by some that a rebuilding programme would boost the nation's GDP.

After the jobs announcement, Republican presidential challenger Mitt Romney called the small unemployment uptick a "sad reminder" that economy is at a "virtual standstill".

Throughout the presidential campaign Mr Romney has argued that the recovery should have been stronger by now.

He says voters will decide Tuesday between what he calls stagnation and prosperity

Polls show the two candidates virtually tied in what may be the closest race in modern history.

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