US unemployment surged above 10 per cent for the first time in more than a quarter of a century in October, increasing political pressure on the Obama administration.

According to figures revealed on Friday, the unemployment rate rose to 10.2 per cent, its highest since 1983, as companies continued to shed jobs in spite of a return to economic growth. Non-farm payrolls were down 190,0000, slightly more than analysts expected, taking the total of jobs lost since the recession began to 7.3m.