By Lucia Mutikani
WASHINGTON | Fri Nov 5, 2010 4:35pm EDT
WASHINGTON (Reuters) - Employment surged much more than expected last month as private companies hired workers at the fastest pace since April, a sign the sluggish economy is finally starting to tick up.
Nonfarm payrolls rose by 151,000 in October, the first gain since May, and more than double economists' expectations, a Labor Department report showed on Friday. Private hiring rose by 159,000, while government cut only 8,000 jobs.
Concern over the anemic job market was a factor behind the Federal Reserve's decision this week to pump an additional $600 billion into the economy through government bond purchases to push interest rates down and stimulate demand.
Analysts said the data was not strong enough to knock the Fed off its new policy course, but it tempered speculation the central bank might have to step up its bond buying.
"The report confirms the economy is regaining momentum and provides an encouraging signal of business confidence," said Aaron Smith, a senior economist at Moody's Analytics in West Chester, Pennsylvania.
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