US economy sheds more jobs

Economy loses 95,000 jobs in September in the last monthly labour snapshot ahead of mid-term elections.

    Al Jazeera's Rob Reynolds visted an employment training center in Los Angeles to hear from those affected first-hand

    The US economy shed 95,000 jobs in September despite predictions that overall payrolls would remain unchanged, the labour department has said.

    Government payrolls fell by a larger than expected 159,000 while private-sector employment, a better gauge of the labour market health, increased by 64,000, the department reported on Friday.

    The unemployment rate remains unchanged at 9.6 per cent.

    Analysts had initially expected a smaller loss of government jobs and a greater rise in the number of private work placements.

    At least 100,000 jobs need to be created each month to put the labour market on firm footing, according to analysts.

    "While economic growth is expected to remain positive, the pace of growth over the next year and a half is not likely to be sufficient to meaningfully improve the unemployment rate from its currently elevated level," James Marple, an economist at TD Bank, was quoted by the AFP news agency.

    "Moreover, even as growth picks up, discouraged workers will begin to re-enter the workforce, putting upward pressure on labour force growth and slowing improvement in the unemployment rate."

    The closely watched report may offer clues on whether the struggling economy is sinking back towards recession or moving toward a sustained recovery.

    It is also the last monthly labour market snapshot ahead of the mid-term elections on November 2.

    The September reading marked the 17th consecutive month the jobless rate has been at or above 9.4 per cent and was the fourth consecutive month that the economy shed jobs.

    Barack Obama, the US president, and his Democratic Party  need a strong report to show economic progress is being made ahead of the elections.

    The opposition Republicans are expected to make strong gains and possibly recapture a majority in one or both chambers of Congress.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Why America's Russia hysteria is dangerous

    Why America's Russia hysteria is dangerous

    The US exaggerating and obsessing about foreign threats seems quite similar to what is happening in Russia.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months