The US economy added a better than expected 103,000 new jobs in September, raising hopes that a “double-dip” recession can be avoided.
The August data, which caused huge alarm when jobs growth came in at zero, were also revised upwards by 57,000 while July’s figure was also increased by 42,000.
Although the unemployment rate held steady at 9.1 per cent, the new data change the complexion of the US labour market and suggests that there is less likelihood of a second recession in three years. Instead of collapsing after this summer’s federal debt ceiling battle, the jobs market appears to have weakened only gently, making a spiral into recession less likely.
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