U.S. economy added 80,000 jobs in October, fewer than expected

The nation’s economy continued to grow sluggishly in October, adding just 80,000 jobs as concerns about the future weighed on employers and consumers, curtailing both hiring and spending.

The unemployment rate dipped slightly, to 9.0% from 9.1% the month before, and the government revised upwards employment figures from both August and September. But the economy still isn’t creating the 125,000 jobs a month economists say are needed to bring down the unemployment rate.

“Employers are riding a turtle when we were hoping they’d get on a Thoroughbred,” said Patrick O’Keefe, a former assistant secretary at the Department of Labor who is now director of economic research at accounting firm J.H. Cohn.

The service sector led growth in the month, continuing the nation's shift to a service-heavy economy. Retail trade grew by 17,800 jobs and transportation and warehousing added 9,400. Professional and business services gained 32,000 positions and educational and health services added 28,000.

After a burst of activity earlier this year, manufacturing seems to be losing steam. That sector gained just 5,000 jobs in October, and a separate report released earlier this week by Automatic Data Processing Inc. said that the manufacturing industry shed 8,000 jobs last month.

Government and construction are also struggling. Cuts in state positions dragged down the government sector, which lost 24,000 jobs. Construction shed 20,000 positions.