MW: September data show improvement in jobs market
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — The nation’s labor market showed some small signs of improvement in September as job growth came in above market expectations, U.S. government data showed Friday.
Employment grew by 103,000 workers in the month, the Labor Department said.
Wall Street had expected a fairly tepid 59,000 increase in nonfarm payrolls for the month, according to a MarketWatch survey.
The gain in September was due in part to the return of about 45,000 workers following a strike against Verizon Communications Inc. VZ +0.42% by unionized workers.
Still, Wall Street greeted the size of the monthly increase, with stock futures moving broadly higher. Read more in Indications.
Indeed, the data did show some strength below the surface. The payrolls count over the prior two months was revised higher by a cumulative 99,000. Payrolls rose by a revised 57,000 in August and by 127,000 in July.
But the pace of job growth remains well below what’s needed to bring down the unemployment rate, which remained steady at 9.1% in September for the third straight month, according to a separate survey of 60,000 households. This was in line with analyst expectations.
The jobless rate has stayed in a tight range near 9% since April 2009.
Federal Reserve Chairman Ben Bernanke told Congress this week that the economy was close to faltering and pushed Congress to take steps to tackle the persistently high unemployment.
President Barack Obama has been pushing Congress hard to take up his jobs bill.
Unemployment rose by 25,000 to 14.0 million for September, while employment rose 398,000 to 140 million. The labor force increased by 423,000 and some discouraged workers returned to the labor market.
The participation rate rose to 64.2% in September from 64.0% in the prior month.
An alternate measure of employment, which includes discouraged workers and those forced to work part-time because of the weak economy, rose to 16.5% from 16.2%. This is the highest level since December 2010.
Greg Robb is a senior reporter for MarketWatch in Washington.
