US economy’s jobs slowdown raises doubts about interest rate rise

Labour department’s lower than expected September jobs data reveals 64,000 fewer jobs than forecast, making a rate rise by Federal Reserve less likely

A slump in world trade and a slowdown in China took their toll on the US economy last month as surveys revealed that firms delayed hiring and factory orders contracted.

US businesses created only 142,000 jobs in September, according to official figures, about 64,000 fewer than expected by analysts. The report by the US Labor department also found that employers kept average pay rises at zero and thousands of workers quit the labour market, taking the participation rate back to levels last seen in the 1970s.

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