Jobless Rate Shows Unexpected Drop in September

The nation's unemployment rate unexpectedly dropped to a seven-month low in September, while nonfarm payrolls fell for the first time in five months.

The unemployment rate declined to 5.6%, compared with 5.7% in August. Analysts were predicting a 5.9% rate.

Nonfarm payrolls decreased by 43,000 in September to 130.9 million. April was the last time a decrease was seen, when 21,000 jobs were lost.

But the government revised its estimate for August payrolls to show far greater employment than expected. The government boosted its estimate to 107,000, up 68,000, while analysts were expecting an increase of just 15,000.

Average hourly earnings rose 0.3%, on par with analysts' predictions.

Total employment rose by 711,000 to 135.2 million, according to a household survey.