October Job Growth Strongest Since May 2007

The US economy created 166,000 net new jobs in October 2007.

The US Labor Department reported today the best job growth since May 2007. Despite the weaknesses in the housing and credit markets, the US economy created 166,000 net new jobs in October 2007. Of those new jobs, 130,000 were created by the private sector. Growth was strongest in health care and temporary help while manufacturing and construction continued to lose jobs.

August and September job growth was revised down by 10,000. Only 96,000 new jobs were created in September.

The unemployment rate for October held steady at 4.7% as the economy created just enough jobs to absorb new workers.

Average hourly earnings rose 0.2% or 3¢ to $17.58 while the average workweek held steady at 33.8 hours.

Offsetting the good news, a separate “Household Survey” of 60,000 households showed a loss of 250,000 workers, the third decline in the last four months.