169,000 Jobs Added, Unemployment Falls 7.3%

The U.S. jobless rate fell to 7.3 percent last month, down from 7.4 percent in July, the Labor Department said Friday. The nation added 169,000 jobs in August.

Many economists were encouraged by economic data released this week. Reports showed that services companies are stepping up hiring and that a dwindling number of people are losing jobs.

Americans are buying more cars than at any time since the recession began in December 2007. And U.S. factories expanded in August at their fastest pace in more than two years.

This year’s steady job growth, along with declining layoffs, has helped lower the unemployment rate from 7.9 percent in January. It also means more Americans are earning paychecks and will likely boost consumer spending in coming months.

The improved jobs picture is a key reason most economists expect the Fed to scale back its bond buying. The Fed’s $85 billion a month in Treasury and mortgage bond purchases have helped keep home-loan and other borrowing rates ultra-low to try to encourage consumers and businesses to borrow and spend more.

Source: Chicago Sun Times