US employers added 337,000 jobs in October 2004, the best monthly total in seven months, the Labor Department reported on 5 November. The figure far exceeded Wall Street's consensus forecast of 175,000 and more than doubled September's gain of 139,000.
The unemployment rate edged up from 5.4 percent to 5.5 percent as more workers entered the labor market. Hiring was broad-based across the economy; only manufacturing contracted, shedding 5,000 positions. Service industries accounted for 272,000 new jobs, led by professional and business services (97,000) and education and health (62,000). Construction added 71,000 positions, boosted in part by cleanup work in southeastern states struck by hurricanes earlier in the year.
The report arrived days after President George W. Bush's re-election. Treasury Secretary John Snow attributed the growth to the administration's tax cuts, while BMO Financial Group economist Sal Guatieri projected annualized GDP expansion could reach 4 percent in the fourth quarter.
Analysts said the data reinforced expectations that the Federal Reserve would raise its benchmark rate to 2.0 percent from 1.75 percent at its 10 November meeting. Moody's chief US economist John Lonski forecast the federal funds rate would close 2004 at 2.25 percent if payroll gains held through November.
Historical summary. TurkishPress restated this AFP wire report, first published in November 2004, in its own words.