* Euro zone manufacturing growth rebounds in October
* Factory jobs growth hits highest since March 2008
* French, German strength again offset weaker bloc members
By Andy Bruce
LONDON, Nov 2 (Reuters) - Euro zone manufacturers boosted their output in October at a faster pace than an earlier estimate, according to a business survey that also showed factories hiring staff at the quickest rate since March 2008.
The Markit Eurozone Manufacturing Purchasing Managers Index (PMI) rose to 54.6 in October, revised up from the earlier estimate of 54.1 and comfortably higher than the final reading of 53.7 for September.
While still firmly above the 50 mark that divides growth from contraction, the reading is still some way off April's post-recession high of 57.6.
Manufacturers reported improved output last month and they took on staff at the fastest rate in around 2-1/2 years, the survey of about 2,000 companies showed.
While a welcome boost for euro zone policymakers, the survey still showed manufacturers in many euro zone countries lagging badly behind Germany and France.
Any optimism stemming from the latest set of manufacturing PMIs might prove short-lived, as economists expect surveys due on Thursday to confirm slowing growth in the bloc's dominant services sector.
"An improvement in the PMI for the first time in three months provides much needed reassurance that manufacturing remains an important driver of the euro area recovery," said Chris Williamson, chief economist at survey compiler Markit.
"However, it is clear that the recovery has moved down a gear. The pace of expansion has eased markedly from the surging near double-digit annual pace seen earlier in the year to a more modest 3-4 percent."
Williamson said the national divergences would continue to raise tension for policymakers. While the surveys showed strong growth in French, German and Italian manufacturers, factories in Ireland and Spain showed very weak expansion, with a decline in Greece.
A Reuters poll of economists published last month showed the 16-nation euro zone economy growing 1.6 percent in 2010, before slowing to 1.4 percent next year as countries step up budget austerity measures.
Manufacturers took on staff at the fastest rate since March 2008, the survey showed, with the jobs sub-index hitting 52.2 from 51.5 in September.
Euro zone unemployment rose slightly to 10.1 percent in September, according to official statistics, having hovered at the 10 percent for the previous five months.
Markit said the jobs rise was largely thanks to Germany, the Netherlands and Austria, while Spain saw a slight increase for the first time since August 2007.
The manufacturing output sub-index saw a strong upward revision to 54.7 from the flash reading of 53.8, up from September's final number of 54.0.
(Editing by Toby Chopra)