U.S. stocks ended firmly higher on Friday, with the Dow industrials ending above 11,000 for the first time in five months, after a worse-than-expected jobs report lifted expectations the Federal Reserve will soon boost monetary stimulus.
U.S. Economy Lost 95,000 Jobs in September
America's job machine continued to sputter in September as a wave of government layoffs, including a move by cash-strapped localities to shed teachers, overwhelmed modest gains in the private sector.
The disappointing jobs report makes it almost certain the Federal Reserve will restart a bond-buying program aimed at stimulating the economy when it meets next month, and ensures job worries will remain issue No. 1 heading into the elections.
U.S. payrolls dropped by 95,000 in September as private employers added 64,000 workers, while governments shed 159,000, half of them temporary Census workers, the Labor Department said Friday. State and local governments shed 83,000 workers. The unemployment rate was unchanged at 9.6%.
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Local Government Employment in U.S. Falls to Lowest Since 2006
The number of workers employed by local governments fell to the lowest level since October 2006 as U.S. cities and towns reduced the ranks of teachers and other school employees in a bid to cut costs.
Local governments employed 14.2 million, or 76,000 fewer people last month than in August, the biggest one-month decline since July 1982, according to data compiled by Bloomberg. Of the jobs cut, 50,000 were in education.