United States economy rebounds from slump by adding 261000 jobs

United States economy rebounds from slump by adding 261000 jobs

United States economy rebounds from slump by adding 261000 jobs

September was the second month of disappointing growth in the United States jobs market.

US labor reports for October were released Friday, and the numbers were slightly better than what was initially expected.

The unemployment rate rose from a postcrisis low, but that was due to more young people searching for work.

The robust employment report comes as growth slows in Canada after a stellar 12-month run that positioned Canada as the top-performing economy among the Group of Seven.

United States job growth accelerated last month after hurricane-related disruptions hurt employment in September, but there were signs that labour market momentum was slowing as annual wage gains sharply retreated.

The jobs figures came as Statistics Canada also reported that the country's trade deficit totalled $3.2 billion in September, essentially unchanged from the previous month which was revised to a deficit of $3.2 billion compared with an initial estimate of $3.4 billion. Friday's revision to the September result restores that positive streak. The increase in jobs in August was raised to 208,000 from 169,000.

In its rate decision and quarterly forecast released last week, Canada's central bank said modest wage gains and a below-average level of hours worked suggest there is still "some excess capacity" in the labor market.

"The seemingly positive headline in the household survey masked some bearish details, as the one-tenth decline in the unemployment rate occurred amid a 0.4 percentage point plunge in the labor force participation rate, the biggest monthly decline in four years", Duncan said.

"Economists have been watching the wage numbers closely", NPR's Chris Arnold reports for our Newscast unit, "and hoping to see Americans getting more money in their pockets".

Among major Canadian cities, only Calgary and Edmonton had higher unemployment rates, at 8.3 and 8.2 per cent respectively. Still, the data probably does little to change expectations the Federal Reserve will raise interest rates next month.

It defines that group of people: "Discouraged workers are persons not now looking for work because they believe no jobs are available for them".

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