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.
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.
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.”
Source: bbc.com
