US Unemployment Rate Falls to 6 Year Low

WASHINGTON (AP) -- In a burst of hiring, U.S. employers added 248,000 jobs in September

and helped drive down the unemployment rate to 5.9 percent, the lowest since July 2008.

The Labor Department's report Friday also showed that employers added a combined 69,000 more jobs in July and August than the government had previously estimated.

The unemployment rate fell from 6.1 percent in August and is now close to 5.5 percent, which many economists consider a healthy level for the United States. The lower rate, combined with the surge in hiring, will intensify debate within the Federal Reserve on whether to raise its benchmark interest rate earlier than expected. Most economists have predicted that the Fed would start raising rates in mid-2015.

The Fed might now feel heightened pressure to raise rates to prevent a strengthening economy from igniting inflation. On the other hand, inflation remains so low - even lower than the Fed's 2 percent target - that it might decide to maintain ultra-low rates well into next year to try to further propel the economy. The Fed's low-rate polices have helped keep borrowing rates low for consumers and businesses.

Average hourly wages dipped last month, a surprising trend in light of the healthy job growth.

"Policymakers will certainly be worried by the lack of wage growth," said Chris Williamson, chief economist at Markit. "The fear is that households will pull back on consumption if interest rates and borrowing costs start rising."

September's robust hiring eased fears that a tepid job gain in August might have signaled the start of a slowdown. But the 142,000 gain that was initially reported for August was revised up Friday to 180,000. In addition, July's job gain was upgraded from 212,000 to 243,000.