Employers hired more workers than expected in September and job gains for the prior months were revised higher, according to a report on Friday that eased fears the economy was heading into recession.
Nonfarm payrolls rose 103,000 the Labor Department said, while the unemployment rate held steady at 9.1 percent even as new workers poured into the labor force.
Part of September's relative strength reflected the return of 45,000 Verizon Communications workers who had dropped off payrolls in August due to a strike. Excluding those workers, payrolls increased by 58,000.
"This is bolstering the case we are not entering a double dip but sort of muddling through," said Robert Lutts, chief investment officer at Cabot Money Management.
U.S. stock index futures turned positive, while government bond prices extended losses. The dollar rose against the yen, but fell versus the euro.
The nation's weak labor market has posed a critical challenge for President Barack Obama, who is gearing up for a tough reelection battle in November 2012. Obama on Thursday used a news conference to press for measures to spur jobs growth that face uncertain prospects in Congress.
The tenor of the report was strengthened by revisions that showed 99,000 more jobs added in July and August than initially reported. In addition, hourly earnings rebounded and the average work week rose.
Economists had expected nonfarm employment to increase 60,000 last month and the jobless rate to hold steady at 9.1 percent.
read more: Olympus Wealth Management
No comments:
Post a Comment