India, Nov. 8 -- US job growth accelerated in October and the unemployment rate fell to 4.1%, suggesting that the labor market could be strengthening after stumbling in mid-summer and keeping the Federal Reserve on track to raise interest rates in December.

The Labor Department's closely watched employment report on Friday also showed the economy added 84,000 more jobs in August and September than previously reported. The decline in the unemployment rate from 4.2% in September was despite more people piling into the labor force, likely seeking to cushion themselves against higher living costs resulting from the conflict in the Middle East.

The better-than-expected report followed on the heels of data this week showing a rise in job open...