There was better than expected jobs news for President Barack Obama just days before the US presidential election.
Employers there stepped up hiring in October added to their payrolls by 171,000.
The government also said 84,000 more jobs were created in August and September than it had initially estimated.
However the numbers still fell short of what is needed to quickly cut the jobless rate.
That ticked up by one tenth of a percentage point to 7.9 percent.
Experts said that was because more workers had restarted their search for jobs
However, even with a moderate pace of employment creation, the US economy faces a real threat of a renewed recession next year.
The latest numbers will not be enough to satisfy the US central bank, the Federal Reserve, which has pledged to continue stimulus measures until there is a sustained pick up in the labour market.
Polls show Obama and Republican Mitt Romney locked in a dead heat in a race in which the nation’s feeble jobs market has been front and centre.
“Really vigorous is a number like 250,000 to 300,000 jobs a month. This is simply not good enough,” Romney economic adviser Glenn Hubbard told CNBC.
Alan Krueger, the head of Obama’s Council of Economic Advisers, said the report showed the economy moving in the right direction. “While more work remains to be done, today’s employment report provides further evidence that the US economy is continuing to heal,” he said in a statement.
Despite the political wrangling, the impact of the report on the election will likely be muted as most voters’ perceptions on the economy are likely fixed by now.
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