The U.S. economy added a disappointing 80,000 new jobs in October, according to the U.S. Labor Department, but the official unemployment rate decreased to 9.0% from the 9.1% rate in September.
The results fell below analysts’ expectations for 100,000 new jobs.
Private-sector job creation was pegged at 104,000, but the total number of new jobs was held back due to losses in government employment.
In addition, the Labor Department revised upward the September jobs reports to show that 158,000 more jobs were added that month than the original 103,000 reported, and that 104,000 new jobs were added in August. The original August figures showed zero job growth.
Labor experts estimate that approximately 150,000 new jobs are needed each month just to keep up with changes in the labor market, and that about 250,000 new jobs are needed each month to quickly bring down the unemployment rate.
Earlier in the week, the Federal Reserve Board said it expected the unemployment rate to fall more gradually than previously forecast. The Fed now projects the unemployment rate to be 8.6% in late 2012, but still around 8.0% in 2013 and between 6.8% and 7.7% in 2014.
Fed Chairman Ben Bernanke cited concerns about European fiscal and banking distress and their impact on global financial markets.
