(Bloomberg) -- The U.S. unemployment rate matched a five-year low in September and job growth the prior month was stronger than previously estimated, easing concern the economy is faltering. The economy created 51,000 jobs last month, the Labor Department said in Washington. While that was fewer than economists predicted, it was offset by a 188,000 rise in August that was almost 50 percent bigger than the government previously reported. The jobless rate unexpectedly declined to 4.6 percent.
Bonds fell and the dollar jumped as the reports suggested the economy will withstand the worst housing-industry downturn in more than a decade. The numbers also diminished speculation that the Federal Reserve will reduce interest rates in coming months. Stocks retreated. ``The message, with the revision included, is that the economy has good forward momentum,'' said John Silvia, chief economist at Wachovia Corp. in Charlotte, North Carolina. ``Housing is definitely having an effect, but it's not a crippling effect. Consumer spending won't collapse. The Fed is on hold.''
The report also showed job growth during the 12 months ended in March may have been about 41 percent higher than previously reported. In a preliminary estimate, the Labor Department said payrolls for the 12 months ended in March 2006 will be revised higher by 810,000, the biggest revision since the Labor Department started benchmarking numbers in 1991. Currently, figures show 2 million jobs were added during that time. The final estimate will be issued in February. |