U.S. gains 103,000 jobs in Sept.; jobless rate unchanged at 9.1 percent

The nation gained 103,000 nonfarm jobs in September, but that was not enough to lower the jobless rate. It held steady at 9.1 percent, the U.S. Bureau of Labor Statistics reported today.

The job gains were enough to rally Wall Street, as the Dow rose in early morning trading.

But a closer look at the numbers caused mixed reaction, with some economists citing any job increases as "a sigh of relief," while others called the report "dismal."

The jobs boost during the month largely reflected the return to payrolls of about 45,000 telecommunications workers from Verizon who had been on strike in August. That had several economists insisting that the job gains were actually inadequate.

In September, temporary employment rose and there were Key job gains in professional and business services, health care, and the ailing construction sector. Government employment continued to trend down, losing 34,000 jobs as the Postal service and local governments shed jobs.

The government reported that the number of unemployed Americans remained unchanged at 14 million for the month. But that doesn't include the 9.3 million Americans who are forced to work part-time jobs because they can't get full employment. It also doesn't include the 1 million Americans who are so discouraged about their inability to land work that they have given up searching.

The nation's jobless rate has been 9.0 percent or higher since April.

Other economists noted that September's job gains are misleading because they include 45,000 Verizon workers who came off the picket lines and went back to work. As a result, new job creation in September was actually around 58,000.

Minnesota State Economist Tom Stinson said that after netting out the effects of Verizon and Minnesota's state shut down that the country really added 150,000 jobs in July, 77,000 jobs in August and 58,000 jobs for September.

"That is not a progression that you want to see," Stinson said, adding that the nation needs 250,000 to 300,000 new jobs a month if its going to return to pre-recession job levels by late 2013, he said.

In a dose of good news, the Bureau of Labor Statistics revised job growth figures for August from zero to 57,000 jobs.

Jeanne Boeh, chair of Augsburg College's Economics Department said "It is an improvement...but if we keep adding this amount of jobs the unemployment rate will rise over time not become lower," said "The average length of unemployment is now over 40 weeks versus 20 weeks in previous recessions."

Job growth for the last four months only averaged 64,000. Yet population growth has averaged 123,000 for the last 14 months, economists said.

Still Moody's economists called Friday's report a "sigh of relief" because it indicated some job gains for September and August.

Stinson dismissed such enthusiasm.

"Forecasters had convinced themselves that this September was going to be a pretty dismal number. Yet the actual number was better than they thought, so they actually cheered a little bit," Stinson said.

He is not cheering. "I am concerned," he said.

The act proposes $447 billion worth of road, bridge, school and other employment inducing projects. It also wants to extend emergency unemployment insurance through 2012. Current emergency provisions expire by yearend.

"Today's employment report reminds us yet again that the economy is not creating enough jobs to bring relief to America's unemployed workers," said Executive Director Christine Owens, president of the National Employment Law Project (NELP). " Without the crucial lifeline of federal unemployment insurance, millions of families will face even more severe economic hardship."

NELP is one of many groups lobbying Congress to pass the Jobs Act. Republicans generally oppose the measure because it would put pressure on the federal deficit and calls for raising tax increases on the rich in an effort to fund the measure.