In the past month, the employers cut 190,000 jobs, more than the 175,000 economists had expected but fewer than the 219,000 lost in September.
The October reading of unemployment rate was also worse than the 9.9 percent expected by economists. Since the recession began in December 2007, the U.S economy has lost a net total of 7.3 million jobs.
U.S. President Barack Obama said the surge in the unemployment rate was a "sobering" figure that underscored the economic challenges ahead.
"Although we lost fewer jobs than we did last month, our unemployment rate climbed to over 10 percent, a sobering number that underscores the economic challenges that lie ahead," he said.
"I promise I won't rest until America is prosperous once again," the president vowed.
According to the Labor Department, the manufacturing sector shed 61,000 jobs last month while construction industries axed 62,000 jobs. Retail trade employment fell by 40,000 over the month.
Meanwhile, professional and business services added 18,000 jobs, and employment in the education and health services grew by 45,000jobs over the month.
The average work week in October was unchanged at 33 hours, the lowest on records dating to 1964.
The Federal Reserve, which is the central bank of the United States, has said that the nation's unemployment rate will remain elevated into 2011. Many economists believe the labor market may not get back to normal meaning a 5 percent unemployment rate until 2013.
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