Nonfarm payrolls dropped 95,000 last month and the unemployment rate was unchanged at 9.6%, the Labor Department reports. That’s bad. But it’s not as bad as it seems because the trouble was due primarily to the government, which laid off workers—159,000 fewer government jobs overall last month. So much for employment stimulus from big brother. But if we focus on private-sector jobs, the net change in September reveals a rise of 64,000. That’s good. It’s not great, and in the grand scheme of the business cycle it’s disappointing. But it could be worse. In fact, it might turn worse in the months ahead for all we know. But the trend in job growth for corporate America is still up at the moment.

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►Unemployment claims drop, while job openings rise
Christopher Rugaber/AP
Applications for unemployment benefits fell last week for the fourth time in five weeks, a sign that layoffs are declining.
The Labor Department said Thursday that initial claims for jobless aid dropped by 11,000 to a seasonally adjusted 445,000. It’s the lowest level since the week ending July 10 and down from 504,000 initial claims in mid-August — the high point for the year.
Economists were mildly encouraged by the drop. But they also pointed out that claims remain at an elevated level consistent with weak job growth. Employers aren’t hiring enough to bring down the 9.6 percent unemployment rate.
►China must fix the global currency crisis
George Soros/Financial Times
I share the growing concern about the misalignment of currencies. Brazil’s finance minister speaks of a latent currency war, and he is not far off the mark. It is in the currency markets where different economic policies and different economic and political systems interact and clash.
The prevailing exchange rate system is lopsided. China has essentially pegged its currency to the dollar while most other currencies fluctuate more or less freely. China has a two-tier system in which the capital account is strictly controlled; most other currencies don’t distinguish between current and capital accounts. This makes the Chinese currency chronically undervalued and assures China of a persistent large trade surplus.

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