The US unemployment rate has fallen to a 50-year low, possibly easing recession worries after recent weak economic data.
The Labor Department figures showed that the rate fell to 3.5% in September from 3.7%, with the economy adding 136,000 jobs last month.
In addition, August data was revised up to 168,000 jobs created instead of the previously reported 130,000.
However, wage growth was unchanged and manufacturing jobs fell in September.
Despite the continued moderate employment growth and sharp drop in the jobless rate, many economists still expect the Federal Reserve to cut interest rates at least one more time this year.
September’s job gains were below the monthly average of 161,000 this year, but still above the roughly 100,000 needed each month to keep up with growth in the working-age population, according to economists.
Manufacturing shed 2,000 jobs last month, the first decline since March, after hiring 2,000 workers in August. The sector is seen as having borne the brunt of the trade wars.
There are fears that the Trump administration’s 15-month trade war with China is spilling over to the rest of the US economy, which has been one of the few bright spots in a world where many other countries are experiencing marked slowdown.
