WASHINGTON (AP) — U.S. job market beat expectations and the stock market managed a modest gain — not great, but good enough after a turbulent week.
America added 117,000 jobs in July, the government said Friday — far from what happens in a healthy economy, and only good for a reduction of one notch in the unemployment rate, to 9.1 percent.
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But the jobs number beat the forecast of economists, who were expecting no more than 90,000. And it was an overwhelming relief for investors, who just lived through two of the most brutal weeks in Wall Street history.
"Nothing to pop Champagne corks over," said Diane Swonk, chief economist at Mesirow Financial, "but a much-needed shot in the arm for confidence at a time when we have so little."
But when they come back on Monday, investors will have to absorb another body blow: Late Friday, ratings agency Standard & Poor's downgraded the United States' debt for the first time, saying the government's debt-reduction plans fall short. The downgrade could lead to higher interest rates and further hamper the economic
Subtracting those government layoffs, the private sector added 154,000 jobs for the month. And the economy added 56,000 more jobs than first thought in May and June.
Workers were paid more, too. Average hourly wages showed the biggest monthly gain since 2008. More jobs and better pay means people have more cash to spend, helping the economy grow.
replica oakley sunglassesAnd manufacturing companies added 24,000 jobs, which suggests that the supply disruptions caused by the Japan earthquake may be almost over. Makers of cars and other products found themselves short of parts after the disaster.
All told, the figures suggested a slower-growing economy — but not one on the verge of a new recession, as some had feared.
