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US jobs growth slows as policymakers fight inflation | US jobs growth slows as policymakers fight inflation |
(32 minutes later) | |
Jobs growth in the US has slowed for a second month, in a sign that the labour market in the world's largest economy may be starting to cool. | Jobs growth in the US has slowed for a second month, in a sign that the labour market in the world's largest economy may be starting to cool. |
US employers added 263,000 new jobs in September, which is almost half the average number seen so far this year. | US employers added 263,000 new jobs in September, which is almost half the average number seen so far this year. |
Despite the slowdown, analysts said the US central bank will need to do more to rein in rapidly rising prices. | |
The dollar strengthened following the report, as investors expect interest rates to continue to rise. | |
This strengthening pushed the pound down to $1.11, having been above $1.12 before the jobs figures were released. | |
The labour market in the US is being closely watched, as the US central bank raises borrowing costs sharply. | |
When will US food prices come down? | |
Is the US in a recession? | |
Officials hope the higher interest rates will cool demand for big-ticket items such as homes, cars and business expansions and ease the pressures that are pushing up prices at the fastest pace since the 1980s. | |
They have warned that the slowdown in activity is likely to lead to some job loss, but they hope to avoid a sharp economic downturn. | |
Analysts said that Friday's report from the US Labor Department showed the jobs market remains relatively tight. | |
The unemployment rate fell from 3.7% in August to 3.5% last month, as restaurants, bars and health care firms continued to hire. | |
"Although this month's jobs report is weaker than the figures recorded last month, the labour market remains relatively strong," said Richard Flynn, managing director at Charles Schwab UK. | |
"The Fed has been increasingly clear that substantial weakness in the economy may be the expense for a return to lower inflation. As rate hikes feed through to the real economy in the months ahead, the labour market may weaken further, reflecting investors' recessionary concerns." |