Grim US job growth raising concerns over economy

The number of jobs created in the US during September slowed sharply for the second straight month and the labor force fell to the lowest level in nearly 40 years, raising new fears about the American economy.

The economy added only 142,000 jobs last month, following an even smaller gain in August, the US Labor Department said on Friday.

Economists had expected a gain of around 200,000 nonfarm jobs.

Hiring in August was much weaker than previously thought, with the government revising its estimate sharply lower to 136,000 from an original 173,000.

The figures marked the smallest two-month gain in employment in more than a year and could raise concerns that the global economic slowdown is undermining the sluggish US economic recovery.

The unemployment rate was unchanged at 5.1 percent last month, but was due to more people dropping out of the labor force, the Labor Department said.

The percentage of Americans in the labor force fell to 62.4 percent in September, the lowest level since October, 1977.

“It could be that businesses have turned cautious in the wake of the recent financial market turmoil,” said Gus Faucher, senior economist at PNC Financial Services.

In another grim sign, the number of hours worked in the country fell 0.2 percent, increasing worries that a broad weakness might have gripped the economy last month.

The dollar also weakened following the weak jobs report. The figures sent the dollar plummeting as much as 1 percent against the euro and the yen on Friday.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk