The USA created 110 000 new jobs last month, better than expected figures from the job market that may calm pressure for further immediate cuts in the interest rate. Hiring figures for August and July were also revised sharply upwards, so much so that they dwarfed the latest numbers in terms of significance, as over the period 118 000 jobs appeared that had previously slipped under the radar. But total unemployment rose slightly as the size of the labour force grew, and over seven million Americans are still jobless.
However the figures hide some stark economic realities. Many of them are government jobs, and in the services sector, but in manufacturing, construction, and other goods-producing sectors, jobs were being shed – 18 000 in manufacturing alone in September.
The Federal Reserve bank next meets at the end of October, so has some time ahead of it to chew over more data on the state of the economy before it decides its interest rate policy…if the markets will let it.