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BUSINESS Saturday 5 OctOber 2019
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U.S. unemployment rate hits a 50-year low even as hiring slows

By CHRISTOPHER RUGABER rates for the third time this
AP Economics Writer year to try to help sustain
WASHINGTON (AP) — The the expansion. At the same
U.S. unemployment rate fell time, the drop in the unem-
to 3.5% in September, the ployment rate from 3.7%
lowest level in nearly five may embolden some Fed
decades, even though em- officials who have resisted
ployers appeared to turn rate cuts. The U.S. economy
more cautious and slowed is “in a good place,” Fed
their hiring. The economy Chairman Jerome Pow-
added a modest 136,000 ell said Friday in remarks in
jobs, enough to likely ease Washington. “Our job is to
worries that an economy keep it there as long as pos-
weakened by the U.S.- sible.” Investors appeared
China trade war and tepid pleased that the jobs re-
global growth might be port at least suggested
edging toward a potential that the economy remains
recession. The government resilient for now. The Dow
on Friday also revised up its Jones Industrial Average
estimate of job growth in was up nearly 300 points in
July and August by a com- afternoon trading.
bined 45,000. Excluding government In this Sept. 17, 2019, photo job seekers line up to speak to recruiters during an Amazon job fair in
Still, a drop-off in the pace hiring, private-sector job Dallas. On Friday, Oct. 4, the U.S. government issues the September jobs report.
of hiring compared with gains over the past three Associated Press
last year points to rising un- months have slowed to employers are increasingly trade war has shut down nections and all of our Chi-
certainty among employ- an average of 119,000 a risk-averse as global uncer- markets that his company nese connections — we’re
ers about the job market month, the weakest show- tainty and recession fears was developing in Europe not doing business with
and the economy in the ing in seven years. rise,” Pollak said. and China. This has forced them right now,” he said.
face of President Donald And despite ultra-low un- Trump has imposed tariffs him to postpone hiring and The weakest sector of the
Trump’s numerous trade employment, average on a majority of Chinese a planned expansion. U.S. economy — manu-
conflicts. Pay growth has wages slipped in Septem- imports and is threatening “We were going to build a facturing, which is likely al-
also weakened, reflecting ber, the Labor Department to impose taxes on the rest new building, and add a ready in recession — cut
the hesitance of employers said. Hourly pay rose just of them on Dec. 15, which restaurant and bar, which 2,000 jobs in September.
to step up wages. 2.9% from a year earlier, would likely escalate pric- would have expanded our At the same time, retailers
“The September jobs report below the 3.4% year-over- es for consumers and slow employment significantly,” shed 11,400 jobs, and em-
sent some conflicting sig- year gain earlier this year. spending. Lix said. ployment in mining and
nals, but the big picture re- Julia Pollak, a labor econo- Adding to global eco- He had also expected to logging was unchanged.
mains one of a labor mar- mist at jobs marketplace nomic pressures, the United add three distillers to his The big gains last month
ket — and an economy ZipRecruiter, said the pay Kingdom is nearing an Oct. staff of 15. But that was be- were in health care, which
— whose growth is down- that employers are adver- 31 deadline for a poten- fore Europe and China im- added 41,400 jobs, and
shifting but not collaps- tising has declined this year tially chaotic exit from the posed retaliatory tariffs on professional and business
ing,” said Michael Feroli, after rising sharply in 2018. European Union. And Ger- U.S. bourbon — after Trump services, which include
an economist at JPMorgan And she noted that the many appears on the brink had raised import taxes on such higher-paying areas
Chase. number of part-time work- of recession. their goods. Europe had as engineering and ac-
The comparatively sluggish ers who would prefer full- Tom Lix, the CEO and accounted for about 15% counting but also lower-
hiring data makes it likely time work has risen over the founder of Cleveland Whis- of Lix’s sales before the tar- paying temp work.
that the Federal Reserve past two months. key, which distills bourbon iffs took effect. That sector added 34,000
later this month will cut Those trends “show that and rye whiskies, said the “All of our European con- positions.q

PayPal drops out of Libra, Facebook’s

payments project

By KEN SWEET longstanding and valued rency project a comfort-
AP Business Writer strategic partner to Pay- able arm’s length distance
NEW YORK (AP) — PayPal Pal, and we will continue from Facebook, which
has pulled out of Face- to partner with and sup- wouldn’t own Libra.
book’s digital currency port Facebook in various Despite Facebook’s ef-
project, known as Libra, a capacities,” PayPal said. forts, financial regula-
blow to the social media Facebook has presented tors as well as members
company that has faced Libra as a currency that of Congress have ques-
stronger-than-expected could be used for digi- tioned the company’s
scrutiny over its proposed tal payments, particularly motives for creating a
creation of an alternative outside the U.S. It would new digital currency, par- This Wednesday, Jan. 19, 2011 file photo shows an exterior
payments system. be backed by real cur- ticularly in light of criticisms view of eBay/PayPal offices in San Jose, Calif.
The digital payments com- rency, unlike other digital that Facebook’s business Associated Press
pany said Friday it is with- currencies like Bitcoin or model is too invasive of its mittee, has demanded with privacy concerns,
drawing from the Libra As- Etherium. users’ privacy. Facebook founder Mark Waters’ has cited the po-
sociation so it can focus The Libra Association, Rep. Maxine Waters, the Zuckerberg testify in front tential for Libra to be used
on its existing businesses. based in Switzerland, was chairwoman of the House of her committee before in money laundering and
“Facebook has been a supposed to give the cur- Financial Services Com- Libra is rolled out. Along other financial crimes. q