American employers probably added 175,000 workers to payrolls in October, the most in five months, while the unemployment rate held at a three-year low of 5.4%, the median forecast in a Bloomberg News survey of economists shows.

A Labor Department report on the topic will be released three days after the November 2 presidential election, which polls show is a toss-up. President Bush says his tax cuts have helped the economy, while the Democratic challenger, Senator Kerry, says they haven’t boosted jobs.

“The focus this week will be jobs related – will President Bush keep his job and by how much will payrolls rebound in October,” said a senior U.S. economist at Lehman Brothers, Joseph Abate.

The projected employment gain would follow September’s rise of 96,000, less than forecast in part because of hurricanes in the Southeast. Faster job growth is needed to help boost incomes, spending, and the economy. A Commerce Department report tomorrow is forecast to show Americans spent more than they earned last month.

Employment growth cooled from earlier this year, when a quarter-million jobs a month were added through May. Less job growth in September probably helped hold incomes to a 0.3% gain during the month, according to the median forecast in a Bloomberg survey. Personal spending probably rose twice as much as incomes last month, the survey showed.

The jobs statistics will be the last Federal Reserve policy makers will see before their November 10 meeting. All 46 economists in a Bloomberg News survey forecast central bankers to raise their benchmark overnight lending rate a quarter point to 2%. Fed officials have signaled as much in recent comments.

“No doubt, the recent run-up in energy prices poses some challenges, but the evidence indicates that, without some further material shock, aggregate demand is on track, consistent with sustained economic growth,” a Fed vice chairman, Roger Ferguson, said in a speech two days ago.

Manufacturing, responding to increased third-quarter consumer demand and business spending on equipment, probably expanded in October, a report tomorrow is forecast to show. The Institute of Supply Management’s gauge of factory activity is forecast to hold at 58.5 in October. Readings above 50 signal expansion and the index has shown growth since May 2003.

A survey last week showed that record crude oil prices have so far led to little change in corporate spending plans. More said they plan to boost spending instead of reduce it. Eighty-six percent of manufacturers said their “spending plans are little changed” this year, according to the National Association for Business Economics. Ten percent expect to buy more business equipment, while 5% said they plan to reduce spending.

People are drawing down savings to spend at a time when energy costs have increased.

Energy prices may increase consumers’ fuel bills by $60 billion and may subtract as much as 0.9 percentage point from fourth-quarter growth, according to an October 22 research report by economists at Citigroup Global Markets Inc.

“We are seeing retail as OK,” said Chief Executive Joseph Galli of Newell Rubbermaid Inc., the maker of Rubbermaid plastic containers. “For our products it certainly hasn’t been gangbusters, but its held up OK.”

The economy grew 3.7% at an annual rate in the third quarter after a 3.3% pace in the second, the government said two days ago.

Consumer spending rose at a 4.6% annual rate, almost three times the pace of the prior quarter. Since 2001, the economy has grown at an average rate of 3.5%, faster than the 3.2% average since 1970.

“This rapid expansion has been concentrated in the five quarter following the 2003 Bush tax cuts,” according to a report from two analysts at the Heritage Foundation research institute, Tim Kane and Rea Hederman. “Since the third quarter of 2003, growth has averaged 4.6%.”

President Bush said he wants to keep taxes low and is counting on increased revenue from a faster economy to help shrink the budget deficit. If elected, Mr. Kerry said he promises to raise taxes on the wealthiest Americans to reduce the budget deficit.

The shortfall in the just-ended fiscal year widened to a record $413 billion, partly a reflection of increased spending to fight the war in Iraq. While a record in dollar terms, the gap is 3.7% of gross domestic product, well below the all-time high of 5.9% of growth reached in 1983.