U.S. Employment Rises Much Less Than Expected In September

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Economy adds 134K jobs in September.

US unemployment rate fell to 3.7 percent in September after standing at 3.9 percent for two months, hitting the lowest level since December 1969, the Labor Department reported on Friday.

There were fewer jobs, however, added to the USA economy in September than analysts expected. department figures showed about 134,000 new jobs for September - well below the 185,000 anticipated by experts. The headline unemployment rate fell to 3.7 percent, the lowest level in 49 years.

"Another solid jobs report; not too hot and not too cold", Kate Warne, investment strategist at Edward Jones told FOX Business.

At some point, analysts and observers are going to have to get comfortable with the notion that a jobs report can simultaneously be "good" and not show payroll growth in the vicinity of 200,000. The coming months will indicate whether pay gains and prices will finally surge in response to a historically low unemployment rate, a development Powell says he doesn't expect.

ADP reported private sector employment increased by 230,000 jobs in September. Job gains in July and August were revised up a combined 87,000 from the original reports. The jobless rate's decline to a 48-year low will put that view to the test.

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"The jobs report these days has become more about inflation than payrolls", and "the big picture should ease concerns about inflation", said Russell Price, a senior economist at Ameriprise Financial Inc.in Detroit.

Of the added jobs, 1,000 were full time and 2,300 were part time.

Wall Street closed down sharply following the news, extending losses from Thursday's selloff due to a sudden jump in bond yields.

Some measures showed the labor market may still have some room for further improvement. The annual advance of 2.8 percent matched economist projections for some cooling in the year-over-year rise, as a strong number for September 2017 wages presented a hard comparison.

As usual, the focus will be on wages - but even more so this time.

"No-one at the Fed thinks unemployment near three percent is sustainable", Ian Shepherdson of Pantheon Macroeconomics said in a client note.

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