U.S. economy adds 148,000 jobs, unemployment drops to 7.2%

PanARMENIAN.Net - The U.S. economy added 148,000 jobs in September, official figures show, lower than analysts had predicted, according to BBC News.

The unemployment rate fell to 7.2%, down from 7.3% in August, the U.S. Department of Labor said.

The release of the figures was delayed by the partial shutdown of the U.S. government earlier this month.

Economists had predicted 180,000 job gains for September, and the lower-than-expected figure could raise fears the U.S. economy is losing momentum.

Employment in professional and business services grew at the fastest pace with 32,000 new jobs added. Leisure and hospitality was the only sector to see a fall with 7,000 jobs lost.

Carl Leahey, senior adviser at Decision Economics, said the report was "so-so", and meant the U.S. central bank was likely to continue its massive $85bn-a-month economic stimulus programme.

"This report will soften people's assessments of current conditions. With the possibility of a replay of the budget showdown as early as mid-January, why would the Fed want to pull any levers now?," he said.

Following the figures, stock markets turned higher, with the FTSE 100 up 0.5% at 6,688 and both the Dow futures and broader S&P index futures up 0.3%, as investors bet on the Fed continuing its stimulus programme at the same pace.

The dollar fell, under pressure from the expectation that the stimulus programme, which effectively creates more dollars, will continue at the same rate.

The U.S. central bank, the Federal Reserve, maintained its economic stimulus programme last month, suggesting it was still uncertain about the strength of the economic recovery.

"Today's underperforming jobs number fully justifies September's cautious FOMC (Federal Open Market Committee)," said Joseph Trevisani, chief market strategist at WorldwideMarkets.