US economy gains 166,000 jobs

Nov 2, 2007, 15:44 GMT

Washington - US employers added 166,000 jobs in October as losses among construction workers slowed and key service industries kept growing, the government said Friday.

The job gains followed increases of nearly 100,000 in each of the last two months. The unemployment rate was 4.7 per cent, unchanged from September but up from 4.4 per cent in October 2006, the US Labour Department said.

Professional and business services, health care and the restaurant business led the gains in October. Construction lost 5,000 jobs, 9,000 fewer than in September, the report said.

Health care added 34,000 jobs in October for a total of 400,000 this year. Restaurants employed 37,000 new workers, continuing an upward trend that has added 365,000 jobs in 2007.

Construction employment has fallen by 124,000 since peaking in September 2006, the report said, reflecting the slump in the US housing market.

Industrial manufacturing lost another 21,000 jobs last month and has shed a total of 275,000 since June 2006, the Labour Department said. Losses were about equal among makers of autos, electronic equipment and chemicals.

Unemployment was 4.2 per cent among whites, 8.5 per cent for blacks and 5.6 per cent among Hispanics, the government said.