October increase of 337,000 workers is nearly double the forecast

By Dean Calbreath November 6, 2004 www.signonsandiego.com

Carpenter Oscar Avila used a nail gun to attach plywood to a house under construction in Chula Vista . October's employment growth was fueled by an increase of more than 71,000 construction jobs in the Gulf States , hit by four hurricanes this summer.

After a long period of sluggish job growth, U.S. employers added 337,000 workers to their payrolls last month – the most since March.

The number was almost double what economists had expected, and the Labor Department also boosted its estimate of jobs created in August and September, adding 113,000 to the previous total.

"This is a blowout number, well beyond my expectations," said Sung Won Sohn, an economist at Wells Fargo Bank, referring to the October increase. "Uncertainty about the economy is diminishing, consumers are getting onto firmer ground, and businesses hiring more."

The biggest growth in employment came in the Gulf States , where thousands of construction workers were hired to rebuild neighborhoods shattered by a series of four hurricanes this summer. More than 71,000 construction jobs were added last month.

Job numbers rose nearly across the board, including retail and wholesale trade, financial services, professional and technical services, temporary help, education, health care, hospitality and government. Manufacturing jobs declined slightly.

Lynn Reaser, an economist at Bank of America, called the employment growth "a strong rebound, suggesting that the economy is generating the jobs required to help keep consumer spending on course."

The jobs news was taken as a positive sign on Wall Street, where the Dow Jones industrial average rose nearly 73 points, to 10,387.54. It was the ninth straight day the market has risen, catapulting the Dow up 360.07 points for the week.

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