US adds 110,000 jobs in September
The Labor Department report on non farm payrolls, seen as one of the best gauges of economic momentum, also revised up its estimate for August to show a gain of 89,000 jobs, instead of a loss of 4,000 that had stunned analysts.
By Agencies |
WASHINGTON: The US economy generated 110,00 jobs in September, the government said Friday in a sign that the world's biggest economy is holding firm in the face of credit and housing woes.
The Labor Department report on non farm payrolls, seen as one of the best gauges of economic momentum, also revised up its estimate for August to show a gain of 89,000 jobs, instead of a loss of 4,000 that had stunned analysts.
The agency said a separate survey showed the US unemployment rate edged up to 4.7 percent from 4.6 percent as the number of jobseekers increased. The report would appear to ease fears that the economy made an abrupt turn downward in August amid a credit squeeze linked to fears about the subprime housing market.
Yet the average monthly gain for the third quarter was 97,000 jobs a month, down from 126,000 on average in the second quarter and consistent with a cooling economy.
The big revision for August was nearly all in local education, which the Bureau of Labor Statistics says can be "volatile" in the summer and had a small survey response.
Average hourly earnings were up 0.4 percent in the month or 4.1 percent year over year to 17.57 dollars, suggesting rising incomes.
September payrolls reflected a drop of 14,000 in construction and a loss of 18,000 in manufacturing, offset by gains of 35,000 jobs in leisure, 33,400 in health care and 37,100 in professional services.
The report last month showing the first drop in overall employment in four years prompted analysts to tear up their economic forecasts and was seen as a factor in the Federal Reserve's decision to slash key interest rates by half a percentage point.
It was not immediately clear how the Fed would respond to the latest report, but Robert MacIntosh, chief economist for Eaton Vance, said the revised data suggests the central bank may have erred in easing rates so much.
"It means the Fed probably shouldn't have done what they did, that they should have waited," MacIntosh said.
"Those of us who were skeptical at the time now feel a little redeemed." MacIntosh said the report is consistent with economic growth in the two to three percent range, above the level of one to two percent most had estimated ahead of the latest data.
"The economy's doing fine despite all the housing headlines," he said.
The Labor Department report on non farm payrolls, seen as one of the best gauges of economic momentum, also revised up its estimate for August to show a gain of 89,000 jobs, instead of a loss of 4,000 that had stunned analysts.
The agency said a separate survey showed the US unemployment rate edged up to 4.7 percent from 4.6 percent as the number of jobseekers increased. The report would appear to ease fears that the economy made an abrupt turn downward in August amid a credit squeeze linked to fears about the subprime housing market.
Yet the average monthly gain for the third quarter was 97,000 jobs a month, down from 126,000 on average in the second quarter and consistent with a cooling economy.
The big revision for August was nearly all in local education, which the Bureau of Labor Statistics says can be "volatile" in the summer and had a small survey response.
Average hourly earnings were up 0.4 percent in the month or 4.1 percent year over year to 17.57 dollars, suggesting rising incomes.
ADVERTISEMENT
September payrolls reflected a drop of 14,000 in construction and a loss of 18,000 in manufacturing, offset by gains of 35,000 jobs in leisure, 33,400 in health care and 37,100 in professional services.
The report last month showing the first drop in overall employment in four years prompted analysts to tear up their economic forecasts and was seen as a factor in the Federal Reserve's decision to slash key interest rates by half a percentage point.
It was not immediately clear how the Fed would respond to the latest report, but Robert MacIntosh, chief economist for Eaton Vance, said the revised data suggests the central bank may have erred in easing rates so much.
"It means the Fed probably shouldn't have done what they did, that they should have waited," MacIntosh said.
ADVERTISEMENT
"Those of us who were skeptical at the time now feel a little redeemed." MacIntosh said the report is consistent with economic growth in the two to three percent range, above the level of one to two percent most had estimated ahead of the latest data.
"The economy's doing fine despite all the housing headlines," he said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
