Paul Davidson, USA TODAY 8:39 a.m. EST November 8, 2013
Employees at Sheffield Platers work on the factory floor in San Diego.(Photo: Lenny Ignelzi AP)
The U.S. economy added a surprising 204,000 jobs in October despite a federal government shutdown that was expected to limit payroll growth.
The unemployment rate, which was expected be more significantly impacted by the shutdown, rose to 7.3% from 7.2%, the Labor Department said Friday.
A survey of economists by Action Economics had estimated that 122,000 jobs were added last month.
Businesses added 212,000 jobs. Federal, state and local governments cut 8,000.
Also encouraging is that job gains for August and September were revised up by a total 60,000. August's gains were revised to 238,000 from 193,000 and September's to 163,000 from 148,000
About 450,000 federal workers were furloughed during the Oct 1-16 shutdown, but were counted as employed because they received back pay. Payrolls, though, were expected to be reduced by private-sector workers temporarily laid off because of the shutdown, including federal contract workers and employees of restaurants and tourist attractions near federal locations.
Average monthly job growth has steadily slowed from about 200,000 early this year to 143,000 recently as federal spending cuts and tax increases took a growing toll on the economy. Economist Michael Gapen of Barclays Capital says the belt-tightening will likely continue to hobble growth in the fourth quarter, but the effects should ease next year as the private sector strengthens.
Employees at Sheffield Platers work on the factory floor in San Diego.(Photo: Lenny Ignelzi AP)
The U.S. economy added a surprising 204,000 jobs in October despite a federal government shutdown that was expected to limit payroll growth.
The unemployment rate, which was expected be more significantly impacted by the shutdown, rose to 7.3% from 7.2%, the Labor Department said Friday.
A survey of economists by Action Economics had estimated that 122,000 jobs were added last month.
Businesses added 212,000 jobs. Federal, state and local governments cut 8,000.
Also encouraging is that job gains for August and September were revised up by a total 60,000. August's gains were revised to 238,000 from 193,000 and September's to 163,000 from 148,000
About 450,000 federal workers were furloughed during the Oct 1-16 shutdown, but were counted as employed because they received back pay. Payrolls, though, were expected to be reduced by private-sector workers temporarily laid off because of the shutdown, including federal contract workers and employees of restaurants and tourist attractions near federal locations.
Average monthly job growth has steadily slowed from about 200,000 early this year to 143,000 recently as federal spending cuts and tax increases took a growing toll on the economy. Economist Michael Gapen of Barclays Capital says the belt-tightening will likely continue to hobble growth in the fourth quarter, but the effects should ease next year as the private sector strengthens.