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Jobs boost for US economy

The US economy generated 110,000 jobs in September, a sign that the world's biggest economy is holding firm in the face of credit and housing woes.

The US Labour Department report on non-farm payrolls also revised up its estimate for August to show a gain of 89,000 jobs, instead of a loss of 4,000 that had stunned analysts.

The agency said a separate survey showed the US unemployment rate edged up to 4.7% from 4.6% as the number of job-seekers increased.

The report would appear to ease fears that the economy made an abrupt turn downward in August amid a credit squeeze linked to fears about the sub-prime housing market.

Yet the average monthly gain for the third quarter was 97,000 jobs a month, down from 126,000 on average in the second quarter and consistent with a cooling economy.

September payrolls reflected a drop of 14,000 in construction and a loss of 18,000 in manufacturing, offset by gains of 35,000 jobs in leisure, 33,400 in health care and 37,100 in professional services.