US employment grew more than expected in September and job gains for the prior months were revised higher, according to a government report released today.
Nonfarm payrolls rose 103,000 the US Labor Department said, while the unemployment rate held steady at 9.1% as an increase in household employment offset a rise in the participation rate.
Part of September's relative strength reflected the return of 45,000 Verizon Communications workers who had dropped off payrolls in August due to a strike.
Excluding those workers, payrolls increased by 58,000.
The tenor of the report was strengthened by revisions that showed 99,000 more jobs added in July and August than initially reported.
In addition, hourly earnings rebounded and the average work week rose.
Economists had expected nonfarm employment to increase 60,000 last month and the jobless rate to hold steady at 9.1%.
The government's closely followed employment report was another sign that the world's largest economy was likely to skirt a recession despite weakness over the summer.
Private employment increased 137,000 last month, an acceleration from August's 42,000 count. But government payrolls fell 34,000 as employment at the local government level fell 35,000 and the Postal Service shed 5,000 positions.
The nation's weak labour market has posed a critical challenge for US President Barack Obama, who is gearing up for a tough re-election battle in November 2012.
The White House said the jobless rate was still too high and said faster economic growth was needed to heal the labour market.
"The unemployment rate remained unchanged at 9.1%, a level that is unacceptably high," the White House said in a blog posting.
"Clearly, we need faster economic growth to put Americans back to work."
It also stressed that despite "substantial headwinds" slowing growth throughout 2011, the US economy has added private sector jobs for 19 straight months, totalling 2.6m jobs over that period.
There were a few bright spots in the payrolls report.
Hourly earnings rose four cents after falling four cents in August.
An improvement in income is crucial for consumer spending, which accounts for about 70% of US economic activity.
Incomes dropped in August for the first time since October 2009, curbing spending and pushing savings to the lowest level in more than 1-1/2 years.
Manufacturing shed 13,000 jobs last month, extending August's decline of 4,000.
Health care added 40,800 jobs. The sector has consistently added jobs as the baby boomers demand more health care services.
Temporary help increased 19.400, slightly less than the previous month's gain.
