US economy adds just 51,000 jobs

US employers added 51,000 jobs in September, the weakest payroll growth in a year, in a further sign of cooling economic growth, the Labor Department says.

Meanwhile, the US unemployment rate, based on a separate survey, fell to 4.6 per cent last month from 4.7 per cent in August.

The growth in payrolls, seen as one of the best indicators of economic momentum, was far weaker than the 120,000 new jobs expected by Wall Street analysts. It was also the lowest growth since October 2005.

However, the report contained a sharp upward revision to August payrolls to show 188,000 new jobs instead of 128,000 in the past estimate.

Average hourly wages - a sign of inflation pressures - rose 0.2 per cent in September, in line with expectations.

Still, earnings have risen 4 per cent in the past year.

The average working week in the US remained at 33.8 hours in September.

Manufacturing lost 19,000 jobs and retail employment fell by 11,900, the report said.

But health care employment increased by 31,200, construction by 8,000, and transportation by 13,300.

The report was another sign of the deceleration in US economic activity.

Growth slowed to a 2.6 per cent pace in the second quarter from 5.6 per cent in the first three months of 2006.

Many economists see a further cooling and some say there are signs of recession risks.

Analysts say the economy needs to add 100,000 to 150,000 jobs each month to absorb new labor market entrants.

- AFP