Job losses jar economy

The U.S. economy shed 159,000 jobs in September, marking the highest number of jobs cut since March 2003. It was the ninth consecutive month of lower payrolls, according to a report by the Department of Labor. The figure was more than double the 73,000 jobs that were cut in August and brings losses for the year to 760,000. "The report settled the argument as to if we are in a recession," said Alan Gayle, senior investment strategist for RidgeWorth Investments Inc. in Atlanta. “The [unemployment data] will relieve inflation pressures and it could open the door for the Federal Reserve to cut interest rates if they feel a need.” The unemployment rate remained at 6.1% in September, after it increased 0.4 percentage points in August from July's level of 5.7%. The number of unemployed people rose to 9.5 million in August and manufacturing jobs declined by 51,000. Retailers cut 40,000 workers and construction employment fell by more than 35,000. Yesterday, estimated initial claims for unemployment benefits during the one-week period ended Sept. 27 was revised upward to 497,000, an increase of 1,000. The average hourly salary rose by 3 cents to $18.17 per hour, up 0.2% in the 12-month period ending in September, following a gain of 8 cents in August. The average work week for production and non-supervisory workers on private non-farm payrolls fell by 0.1 hour to 33.7 hours.