Modest gain

Associated Press

WASHINGTON

The American job market improved modestly in October, and economists looking deeper into the numbers found reasons for optimism — or at least what counts for optimism in this agonizingly slow economic recovery.

The nation added 80,000 jobs. That was fewer than the 100,000 that economists expected, but it was the 13th consecutive month of job gains. Fears of a new recession that loomed over the economy this summer have receded.

The unemployment rate nudged down, to 9 percent from 9.1 in September.

“Those are pretty good signs,” said Michael Hanson, senior economist at Bank of America Merrill Lynch. “We’re hanging in there.”

No one looking at Friday’s report from the Labor Department saw a quick end to the high unemployment that has plagued the nation for three years. The jobless rate has been 9 percent or higher for all but two months since June 2009.

The government uses a survey of mostly large companies and government agencies to determine how many jobs were added or lost each month. It uses a separate survey of households to determine the unemployment rate.

The household survey picked up a much bigger job gain — 277,000 in October, and an average of 335,000 per month for the past three months. The household survey picks up hiring by companies of all sizes, including small businesses.

The household survey is more volatile and less comprehensive than the other survey, and is not followed as closely by economists. Still, job growth in the household survey has not been this strong for three months since the end of 2006.

People counting themselves self-employed increased by 200,000 in October, accounting for most of the increase, but it is difficult for economists to explain the three-month trend.

Economists pointed out other bright spots in the unemployment report:

Average hourly wages rose 5 cents a week, to $23.19. More pay for workers means they have more spending power in the economy. Many businesses are waiting for customer demand to pick up before they hire in big numbers again.

August and September turned out to be much better months for job creation than first thought. The nation added 104,000 jobs in August and 158,000 in September, a total of 102,000 more than earlier estimates. The August figure was first reported as zero.

The number of people considered long-term unemployed, meaning they have been looking for work for at least six months, fell by 366,000, to 5.9 million. That is the fewest since April.