US Economy Adds 171,000 New Jobs.

Thisday

The announcement is a boost for Obama.

The US economy added 171,000 new jobs in October, which was much more than had been expected.

But the official figures from the Labor Department showed that the unemployment rate still rose to 7.9%, having fallen to 7.8% in September, as more workers resumed the search for jobs.

Only people who are currently looking for a job count as unemployed, reports the BBC.

Unemployment is one of the key issues ahead of Tuesday's presidential election.

The figures were the last major set of economic data scheduled before the election and the Republican candidate, Mitt Romney, has made the state of the jobs market one of the central planks of his campaign.

"Today's increase in the unemployment rate is a sad reminder that the economy is at a virtual standstill," he said.

"The jobless rate is higher than it was when President Obama took office, and there are still 23 million Americans struggling for work."

The number of jobs created in the previous two months was revised upwards, with an extra 34,000 jobs added in September and 50,000 added in August.

"We've made real progress," Barack Obama told a crowd in Ohio.

"But we've got more work to do."

Despite the new jobs, Barack Obama will still go to the polls with the highest rate of unemployment of any president seeking re-election since Franklin D Roosevelt.

The unemployment rate edged up slightly because the number of people looking for jobs increased. These were people who had previously given up hope of finding work, but who now think they may have a better chance. As a result, this increase may be seen as a sign of confidence in the economy, analysts say.