Equally troubling, September's job loss was revised to 284,000 from the previously announced 159,000.
Further, the unemployment rate surged to 6.5% in October from 6.1% September, the Labor Department said.
Also, an alternate gauge of unemployment, the augmented rate, which includes discouraged workers, rose to 11.7% October from 11% in September. The conventional U.S Labor Department unemployment rate does not include discouraged workers because they are not technically "seeking work." Still, some economists argue this is a more-accurate gauge of employment, contending that these discouraged workers would accept jobs if the positions were available.
Economists surveyed by Bloomberg News had expected the U.S. economy to shed 200,000 jobs in October and the unemployment rate to increase to 6.3%. October was the U.S. economy's 11th straight monthly job loss.
Further, the U.S. economy has now lost about 1.18 million jobs this year and more than 650,000 in the last three months.
Economist Peter Dawson told BloggingStocks Friday, the October report represents another incontrovertible negative data point for the U.S. economy.
"The job market continues to worsen. We have employers cutting back on slackening demand, and those facts, combined with tough conditions in housing, manufacturing, the auto sector, and financial services shows an employment picture in very rough shape," Dawson said.
Further, Dawson said the job loss trend and unemployment rate "build the case for a substantial fiscal stimulus package, perhaps a fiscal stimulus package in two stages."
"We can't continue to incur job losses of this magnitude, as rising unemployment will put more pressure on state-level budgets, and further reduce consumer demand, leading to an even worse negative feedback loop into the economy," Dawson said. "We have to find a growth catalyst and if the only option is fiscal stimulus, it should be implemented, and the sooner the better."
In October, the service sector lost 108,000 jobs; construction, 49,000; retail, 38,000, financial services, 24,000.
Economic Analysis: As economist Dawson noted, the time for Congress to pass another fiscal stimulus package is now.