MercoPress. South Atlantic News Agency

US September job figures bring sigh of relief to markets

Time for a quiet celebration at the White House

US employment grew more than expected in September and job gains for the prior months were revised higher, according to a government report, released Friday, that could ease fears the economy was heading into recession.

Non-farm payrolls rose 103.000 the Labour Department said, while the unemployment rate held steady at 9.1% as an increase in household employment offset a rise in the participation rate.

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.

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 non-farm employment to increase 60.000 last month and the jobless rate to hold steady at 9.1%.

The government's closely followed employment report was another sign that the world's largest economy was likely to skirt a recession despite weakness over the summer.

Private employment increased 137.000 last month, an acceleration from August's meagre 42.000 count. But government payrolls fell 34.000 as employment at the local government level fell 35.000 and the Postal Service shed 5.000 positions.