"Small and medium-size firms continue to be the driving force behind job growth"
- Ward McCarthy, chief financial economist at Jefferies & Co. Inc.
The U.S. private sector created more than expected jobs during the last month, as the service sector continued to be the main employment driver of the world's biggest economy. The total number of people employed in the private sector rose by 162,000 in September. The figure is now closer to the 171,000 average this year, while this pace of job creation is still not enough to move the overall unemployment rate below 8%.
"Small and medium-size firms continue to be the driving force behind job growth," said Ward McCarthy, chief financial economist at Jefferies & Co. Inc. in New York. "Hiring at startup and small firms will continue to be the key to the sustainability of the labor market recovery going forward."
"Jobs growth of 130,000 a month or so would keep the unemployment rate constant. Plus or minus 30 or 40,000 above or below that is essentially noise," said Joel Prakken, chairman of Macroeconomic Advisors.
The Standard & Poor's 500 advanced 0.36 per cent to 1,450.99. The Dow Jones Industrial Average climbed 0.09 per cent to 13,494.61. The Nasdaq Composite added 0.49 per cent to 3,135.23.
© Dukascopy Bank SA