WRAPUP 4-US jobless rate hits 26-1/2-year high at 10.2 pct

* Unemployment rate climbs to 10.2 pct, a 26-1/2-year high

* Employers cut 190,000 jobs last month, fewer than Sept

* Analysts expected 9.9 pct jobless rate, 175,OOO job loss

* Report lifts government bonds, pressures stocks (Adds details, consumer credit)

By Lucia Mutikani

WASHINGTON, Nov 6 (Reuters) - The U.S. jobless rate unexpectedly jumped to 10.2 percent last month, a 26-1/2-year high, adding to pressure on the Obama administration to do more to tackle unemployment even as signs of recovery mount.

The Labor Department said on Friday that employers cut 190,000 jobs in October, more than the 175,000 markets had expected but fewer than the 219,000 jobs lost in September.

Job losses for August and September were revised to show 91,000 fewer jobs were lost than previously reported, taking some of the sting out of the report.

While the revisions hinted at some improvement, economists had expected the jobless rate to rise to 9.9 percent from September's 9.8 percent. A wider gauge of labor-market slack that includes unemployed Americans who have given up looking for work hit a record 17.5 percent.

Speaking at the White House, President Barack Obama said the administration was considering infrastructure investments and business tax cuts to aid the economy's recovery.

"I can promise you that I won't let up until the Americans who want to find work can find work and all Americans can earn enough to raise their families and keep their businesses open," he said. (For a graphic of the jobless rate over time, please see: here)

The data initially pushed U.S. stocks lower, but Wall Street indexes erased losses to trade roughly flat in afternoon trade. [.N]

U.S. Treasury debt prices rose as traders saw the data suggesting a prolonged period of low interest rates. [US/]

"Unfortunately, the problem is becoming deeper and more protracted," Mohamed El-Erian, chief executive of bond giant Pacific Investment Management Co (PIMCO) told Reuters.

"It's not just the increase in the headline number," he said. "It's also about the longer-term nature of unemployment, the increase in underemployment and the prospect for only a very gradual recovery," he said.

While Obama sees job creation as his top priority, the scope for further steps to boost the economy is limited by record budget deficits.