U.S. employment increases by 638,000 jobs in October

The U.S. economy added 638,000 jobs in October, according to the Bureau of Labor Statistics, and the unemployment rate fell to 6.9 percent. Oxford Economics characterized the results as “a constructive October jobs surprise in the face of downwardly revised expectations.”

The COVID-19 pandemic and economic collapse continue to have an effect, however, as nonfarm employment remains 10.1 million jobs lower than its February level.

In October, private-sector jobs increased while public-sector employment decreased by 268,000 — part of which was driven by the end of employment for 147,000 temporary 2020 Census workers.

The biggest job gains, by employment category, were in leisure and hospitality (up 271,000 jobs), professional and business services (up 208,000 jobs), retail trade (up 104,000 jobs), and construction (up 84,000 jobs).

Oxford Economics cautioned: “With policy gridlock likely in the wake of the U.S. election, our focus has shifted back to