Job growth picks up

Strong gain in October payrolls is more than double what was expected; unemployment remains steady at 4.7%.

NEW YORK (CNNMoney.com) -- Employers added more workers to payrolls in October, according to the government's closely watched jobs report that showed the labor market significantly stronger than Wall Street expectations.

There was a net gain of 166,000 jobs in the month, up from the revised 96,000 increase in September, the Labor Department said Friday. Economists surveyed by Briefing.com had forecast an 80,000 increase in the period.

The unemployment rate stayed at 4.7 percent. That matched both economists' forecasts as well as the rate posted in September.

The report calmed concerns that the meltdown in mortgage markets and the resulting hit to home building would cause problems in the broader labor market. Construction lost only 5,000 workers in this report, as much of the 21,500 decline in residential construction jobs was made up in other sectors of the building industry. Lenders trimmed nearly 5,000 jobs, but the financial sector posted a 2,000 job gain overall.

The service sector was the major driver of job growth, even as retailers showed a 22,000 job decline in the seasonally-adjusted reading. About half of the loss of jobs among retailers came in two battered sectors - auto dealers and building supply stores. But there were also declines in the segments considered more general retailers, such as department stores, clothing and electronics retailers.

The strong gains came from employers in the government, leisure and hospitality and business and professional services sectors. But John Silvia, chief economist with Wachovia, questioned some of the gains being reported there.