WASHINGTON (MarketWatch) — The U.S. added 161,000 new jobs in October and the unemployment rate fell below 5% again, reflecting a tight labor market that’s forced firms scrambling to fill open positions to boost pay at the fastest pace in seven years.

The increase in hiring last month, along with stronger job gains in August and September than previously reported, shows the seven-year-old economic recovery still has plenty of life despite a slowdown in growth earlier in the year. Health care companies, white-collar professional outfits, and financial firms led the way in job creation.

A steady jobs market also gives the Federal Reserve the “further evidence” it’s seeking to justify an expected increase in interest rates when bank bigwigs meet in mid-December. The Fed earlier this week signaled it’s on the verge of raising interest rates soon.

“Today’s jobs report shows continued progress and strengthens the argument of Fed hawks who think it’s time to raise interest rates,” said Tony Bedikian, managing director of global markets at Citizens Bank.

Also read:‘Healthy’ hourly earnings highlight of October jobs report, analysts say

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Analysis: October Jobs Report

Republican presidential contender Donald Trump called the jobs report “disastrous,” a characterization not shared by Wall Street economists. The pace of hiring over the past year might be just strong enough, history shows, to help his Democratic rival Hillary Clinton prevail.

Read: Clinton or Trump? Here’s what the jobs creation says about who will win

Unemployment, meanwhile, fell to 4.9% from 5% and remained near an eight-year low. The jobless rate has barely changed in the past year. See the government’s jobs report.

Although job openings are at a record high, companies aren’t filling positions as rapidly as they become available. One reason: executives say it’s gotten harder to find skilled employees.

In many cases, companies have had to boost pay to attract or retain workers. Hourly pay for the typical employee jumped 0.4% in October to $25.92.

What’s more, hourly wages have climbed 2.8% over the past year, the fastest 12-month increase since June 2009 just as the Great Recession was ending. Higher labor costs are another factor that could nudge the Fed to raise rates soon.

Total employment gains for September and August, meanwhile, were 44,000 higher than previously reported.

The government said 191,000 new jobs were created in September instead of a previously reported 156,000. August’s gain was raised to 176,000 from 167,000.

In another good sign, a broader measure of unemployment known fell to 9.5% from 9.7%, touching the lowest level since May 2008. The so-called U6 rate includes part-timers who can’t find a good full-time position and discouraged jobseekers who’ve recently given up looking for work.

Although the rate is still elevated, it continues to decline. The U6 rate hovered around 8% shortly before the 2007-2009 downturn.