WASHINGTON, D.C. -- The U.S. unemployment rate rose in October despite employers hiring more people than expected.
The labor department said the unemployment rate rose to 7.3 percent, up from 7.2 percent in September.
Employers added 204,000 jobs last month.
The federal government also shut down during October, leaving hundreds of thousands of workers furloughed. The labor department said the unemployment rate likely rose because those furloughed federal workers were counted as unemployed.
Some of the biggest job gains came from the leisure and hospitality industry which added 53,000 new jobs.
Restaurants did a lot of hiring last month adding nearly 30,000 workers. Professional and businesses services also saw big gains with an increase of 44,000 jobs.