MercoPress. South Atlantic News Agency

US economy picking up: more jobs in October and 2.8% growth in third quarter

However the unemployment rate edged up because of the federal government closedown of 16 days (Pic AP)

The US economy added a better-than-expected 204,000 jobs in October, according to the latest figures from the Labor Department. There had been fears that the 16-day shutdown of government services last month could have hit jobs growth.

 The monthly non-farm payroll figure is taken as a key indicator of the health of the world's biggest economy. However, the latest figures also showed that the unemployment rate edged up to 7.3% from 7.2% in September. The Labor Department said that this was likely to be because many federal workers were counted as unemployed during the shutdown.

The report also said that employers added 60,000 more jobs in September and August than earlier estimates had suggested. The latest figures add to a positive week for US economic data.

On Thursday, it was announced that the US economy grew at a better-than-expected annual pace of 2.8% in the third quarter.

Investors are watching closely the health of the US economy, with signs of growing strength likely to raise expectations that the US Federal Reserve will begin to scale back its massive economic stimulus program.

In Thursday's GDP figure, the Commerce Department said that growth had been lifted by rising exports and a pick-up in construction of homes. However, it also said that the pace of growth in consumer spending - which accounts for about two-thirds of US economic activity - had slowed from the previous quarter.