U.s. 103,000 Jobs Added in September

U.S. 103,000 jobs added in September
The U.S. Department of Labor announced Friday that 103,000 jobs were added to the U.S. economy in September, making it easier to recession fears. However, total unemployment remains anchored at 9.1%.
U.S. Employers hired more workers than expected in September and the increased use of the two previous months were revised upwards, making it easier to recession fears.

However, the unemployment rate remained flat at 9.1 percent, keeping the pressure on President Barack Obama and U.S. Federal Reserve to do more to stimulate a stronger recovery.

Non-farm wages rose 103,000, the Labor Department said Friday, but some of the relative strength in September was due to the return of 45,000 striking workers in communication. The exclusion of these workers, employment grew by a meager 58,000.

Employment growth is still below the pace needed to lower the unemployment rate, but the report was a tenor stronger than economists expected. Hourly earnings have recovered, the length of the average workweek has increased and the revisions that 99,000 additional jobs were added in July and August than previously reported.

In addition, the unemployment rate remained stable despite the increase of new workers into the labor market.

“It is strengthening the case that we will not double-dip recession, but a little off the hook,” said Robert Lutts, chief investment officer at Cabot Money Management.

U.S. stocks increased, while bond prices extended losses. The dollar moved higher against the yen but fell against the euro.Economists had expected payrolls to rise 60,000 months with the unemployment rate stable at 9.1 percent.

The weak labor market is a crucial challenge for Obama, who faces a tough battle for reelection in November 2012.

Obama has proposed a package of measures to stimulate job growth, but the plan met strong opposition from Republicans, raising the possibility of Washington will be unable to take decisive action.

Former senator Rick Santorum Republican presidential candidate was quick to use the latest employment figures to keep the pressure on Obama. ”It’s anemic growth at best, and you do not see something that this administration will turn around,” he told CNBC.

The White House admitted the employment growth was not good enough.

View recession

Health services, construction, retailing and professional and business have contributed to increased wage bill, while manufacturing has been an obstacle for a second consecutive month.

The report was followed closely to provide the latest sign of the world’s largest economy, is likely to skirt a recession despite the weakness in the summer, although the outlook for 14 million unemployed in the nation remained loose.

“We are not in any type of work that could bring down the level of unemployment, which remains a major concern for the economy,” said Ellen Zentner, senior economist at the United States of Nomura Securities New York.

“But nevertheless, stronger than expected increase in non farm jobs … help provide some relief to markets that the U.S. economy cling to recovery.”

The private employment grew 137,000 months of this year, a rise of 42,000 in August scarce cash. However, the government wage bill fell by 34,000 jobs in the local government level fell 35,000 to the Postal Service for 5,000 jobs.

The decrease in local government wage bill reflects a loss of 24,400 jobs in education.

Recent reports on spending by manufacturing companies and auto sales suggest the economy more resilient in the third quarter after growing at an anemic 1.3 percent annually during the period April to June, although growth employment is not recovered.

Economists warn that the U.S. economy still not off the hook, with the debt crisis of Europe remains a threat that could derail the U.S. recovery.

The economy must grow at least at a rate of 2.5 percent per year, with a growing payroll 125,000 jobs or more per month to keep the unemployment rate rising.

Pressing a STRING

Last month, the Fed announced new measures to stimulate the economy, pushing long-term borrowing costs lower even moving assets on its balance sheet. However, economists do not expect that these efforts bear fruit while many Americans can not access credit.

Uncertainty about the economic outlook, which remains tainted by the bitterness in Washington over tax policy and the inability of Europe to become familiar with its debt crisis has made businesses reluctant to hire aggressively.

But there were some positives in the report.

Revenues increased by 400 hours after the fall of four cents in August to take a 1.9 percent above its level a year ago, the length of the workweek rose to 34.3 hours to 34 , 2 hours, and employment growth were widespread.

Health and social wages have increased 40,800 jobs, construction added 26,000 workers, while the payroll, sometimes regarded as temporary help a harbinger of a future permanent employment increased 19,400 -.