A report showing modest improvement in the US labour market today shows the economy remains poised for slow growth ahead and is likely to avoid a slide back into recession.
The US economy added 39,000 non-farm jobs in August and the unemployment rate dipped to 5.7 per cent from 5.9 per cent in July, the US Labor Department said.
The agency also revised its figures for the prior two months. In July, payrolls rose a revised 67,000, up from the initial estimate of a 6,000 rise while job growth in June was revised downward to a gain of 34,000 from the previous estimate of a 66,000 rise.
But non-farm payrolls have grown during four consecutive months. The previous consecutive rise of such a length was the five-month string from November 2000 to March 2001.
"The bottom line on this employment report is that it is OK - not decisively weak, yet not strong,' said Mr Dick Rippe of Prudential Securities.
"It is, however, in line with an economy that is gaining at a slow, but positive pace," he said.
Economists view the labour report as crucial to US economic prospects because jobs need to be added to maintain consumer spending, which accounts for about two-thirds of US gross domestic product.
The report, said most market watchers, was just strong enough to keep the US economy out of a feared "double-dip" recession, while not weak enough to prompt a rate cut by the Federal Reserve to help stimulate growth.
"The labour market may not be totally hale and hearty, but it is far from falling apart," said Mr Joel Naroff of Naroff Economic Advisors.
AFP