Construction Down, But Jobs Report Shows Strength

Washington, DC, October 5, 2007—The unemployment rose to 4.7% in September, and more jobs were created than expected over the last three months, according to the Labor Department.

The numbers were greeted initially with optimism on Wall Street, as stocks opened higher.

Nonfarm jobs rose by 110,000 in September. In addition, job growth in July and August was revised higher by 118,000. The original August report showed a loss of 4,000 jobs but the revision showed a gain of 89,000.

The unemployment rate, previously at 4.6%, edged up to 4.7%, the highest in a year.

The labor force grew by 573,000, and employment rose by 463,000, the largest number in more than two years.

Payrolls have increased by an average of 90,000 over the past three months, compared with 147,000 per month in the first five months of the year.

Average earnings rose 0.4% in September, and 4.1% over the last year.

Construction industry continued to show weakness, dropping 33,000 jobs. Jobs in the financial services fell by 14,000 for a second straight month.