Unemployment rate inches up to 7.9 percent

WASHINGTON - U.S. employers added 171,000 jobs in October, and hiring was stronger in August and September than first thought. The solid job growth showed that the economy is strengthening slowly but consistently.

The unemployment rate rose to 7.9 percent from 7.8 percent in September. That was mainly because many more people began looking for work, and not all of them found jobs. The government uses a separate survey to calculate the unemployment rate, and it counts people without jobs as unemployed only if they're looking for one.

Nevada's October unemployment numbers won't be out until Nov. 19, but September's figures showed the state's jobless rate remained well above the national average. Unemployment was 11.8 percent statewide, and 11.5 percent in Las Vegas. Factor in discouraged workers and part-timers who'd rather have full-time jobs, and the rate is above 22 percent.

Brian Gordon, a principle in local research firm Applied Analysis, said he didn't see anything in the new national data that would indicate big local changes in October. He said he expects the upcoming report to reveal consistent, modest job growth of around 1 percent year over year, with little effect on the month's jobless rate.

"As improvements take place throughout the country, Southern Nevada's tourism industry could benefit as consumers increase their appetite for leisure and travel activity," Gordon said. "But without sustained and substantial improvements in the national economy, we wouldn't expect sizable gains in Southern Nevada. Should national gains pick up momentum in coming months, there would be greater flow-through to regional economies."

Nevada has led the nation in joblessness since May 2010.

Friday's report was the last major snapshot of the economy before Tuesday's elections, and was compiled before Superstorm Sandy struck the East Coast earlier this week. It's unclear what political effect the report might have. But by now, all but a few voters have made up their minds, particularly about the economy, analysts say.

Since July, the economy has created an average of 173,000 jobs a month - up from 67,000 a month from April through June. Still, President Barack Obama will face voters with the highest unemployment rate of any incumbent since Franklin Roosevelt and slightly higher than the 7.8 percent on Inauguration Day.

Review-Journal writer Jennifer Robison contributed to this report.