The U.S. economy in September showed growing momentum for creating new jobs, even as the unemployment rate continued to edge up, relieving market concerns that the U.S. economy may slip into a recession due to a meltdown in the subprime mortgage market.
Figures released by the U.S. Labor Department on Friday showed that 110,000 new jobs were created in September, registering the biggest increase in payrolls in one month since last May.
The figures also showed that 89,000 new jobs were created in August, an improvement on the net loss of 4,000 the Labor Department first estimated.
The pickup in job creation is widely interpreted as a sign that the U.S. economy has not completely lost its momentum to rebound in the face of the credit crunch and a slump in the housing market.
The jobless rate, however, edged up to 4.7 percent from 4.6 percent in August as hundreds of thousands of people lost their jobs and returned to the labor market.
The impact of the subprime crisis, which became apparent in early August, is showing up in related sectors of the economy. Construction firms and financial services companies slashed a total of 28,000 jobs in September. Factories eliminated 18,000 jobs while retailers laid off over 5,000 employees.
The losses, however, were offset by the creation of more jobs in education and health services, professional services, leisure and hospitality, and government work, leading to a net gain in new jobs in September.
Source: Xinhua
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