WASHINGTON _ U.S. employment snapped back last month after Hurricanes Harvey and Irma depressed payrolls in September, suggesting that the long expansion in the labor market remains solid, according to government data released Friday.
The unemployment rate fell in October to a 17-year low of 4.1 percent, although not for the right reason: There was a large drop in the size of the labor force.
The unemployment figure has fallen steadily this year, from 4.8 percent in January. But as the labor market has tightened, wage growth has remained subdued.
Average hourly earnings for all private-sector workers dropped a 1 cent in October, to $26.53, after rising 12 cents in September. Over the past 12 months, average pay for workers has risen just 2.4 percent.
Last month's job growth of 261,000 was less than the 310,000 or so that analysts expected, but the September payroll change was revised higher _ from a loss of 33,000 jobs initially reported to a gain of 18,000. Job growth for August also was stronger than previously estimated.
In the past three months, employers added on average 162,000 jobs a month. That is down slightly from last year and the first half of this year, but still well above what's needed to absorb the natural increase in the workforce population.
The storms that swept Texas and Florida took a particularly big toll on employment at restaurants and bars, but most of those losses were reversed last month as workers returned to their jobs.
There was also robust hiring last month at higher-paying professional and business services. Health care had a solid month, and manufacturing employment rose by 24,000 across various industries. Manufacturing has added 156,000 jobs since last November, the Labor Department said.
