U.S. employment increased more than expected last month as private companies hired workers at the fastest pace since April, offering more signs of an up-tick in a sluggish economy.

Nonfarm payrolls increased 151,000 in October, the first increase since May, as a 159,000 jump in private employment more than offset a 8,000 drop in government payrolls, the Labor Department said on Friday. In addition, the government revised payrolls for August and September to show 110,000 fewer jobs lost.

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 further and stimulate demand.

The U.S. central bank, which cut overnight interest rates to near zero in December 2008, had already bought about $1.7 trillion in government debt and mortgage-linked bonds.

October’s strong jobs growth, however, failed to make a dent in the lofty unemployment rate, which remained at 9.6 percent for a third straight month, in line with market expectations.

(Source: CNBC)