US adds less-than-expected 214k jobs in October, but data shows bright spots - UPDATE

The headline payrolls figure missed the consensus forecast of 235,000, but estimates for September and August were both revised up by a combined 31,000.

Some 256,000 jobs were added in September, up from the initial estimate of 248,000, while August's reading was pushed up to 203,000 from 180,000, the Labor Department said.

The revisions mean that the US economy has now increased non-farm employment by 200,000 or more for nine consecutive months, a streak not seen since 1994.

"The sustained impressive rate of job creation has corresponded with a strong run of economic growth, which looks to have persisted into the fourth quarter, albeit with some signs of the pace of expansion easing," said Markit economist Chris Williamson.

The jobless rate unexpectedly fell from 5.9% in September, while the labour-force participation rate inched up to 62.8% from 62.7%.

Despite some bright spots in the report, wage inflation was still subdued with hourly pay rising by just 0.1% in October to $24.57, putting the annual increase at 2%.

The report comes just a week after the Federal Reserve voted to end its quantitative easing programme, so markets are watching labour-market figures closely amid speculation about when policymakers will decide to hike interest rates.

Williamson said that one of the essential factors that the Fed will be taking into account before tightening monetary policy is the return of wage growth.

"With average hourly wage growth stuck at just 2% per annum in October, a rate it has been more or less steady at over the past five years, policymakers will generally be in no rush to raise interest rates," he said.

Robert Wood, economist at Berenberg, said that the upwards revisions to the previous two months "should temper any disappointment" and the "figures bode well for our forecast of continued strong US growth".

"We look for the first Fed rate hike next June," he said.