US government figures published today show that the country's job market brightened in August as employers added 144,000 workers to their payrolls.
Figures for the previous two months were also revised up, the Labor Department reported.
The department said the August unemployment rate dropped to 5.4% from 5.5% in July, the lowest rate since October 2001.
The August job gains came in slightly below Wall Street analysts' forecasts for 150,000 but the department also revised up its totals for June and July job creation by 59,000. That created a moderately more favourable picture for summer job growth, but analysts believe it is not yet clear whether the economy is shaking off a June soft patch.
Separate figures showed that growth in the US service sector slowed in August. The Institute for Supply Management's non-manufacturing index fell to 58.2 from 64.8 in July, indicating a slower pace of expansion. The decline was larger than expected.