U.S. jobs market keeps modest growth in September

U.S. job market continued modest growth in September while wages growth picked up.

Total nonfarm payroll employment rose by 156,000 in September, and the jobless rate edged up to 5 percent, said the Labor Department on Friday.

Job gains in the month were slightly below market expectation of about 170,000.

The Labor Department revised the job gains in July and August, with the combined employment gains in the two months 7,000 less than previously reported. Over the past three months, job gains have averaged 192,000 per month.

The labor force participation rate, the share of the working-age population employed or looking for a job, ticked up to 62.9 percent from 62.8 percent in August.

Average hourly earnings for all employees increased six cents to 25.79 U.S. dollars. The average hourly earnings have risen by 2.6 percent year on year, faster than the 2.4-percent growth in August.

Job growth is still running at a pace faster than what is needed to keep up with demographic trends, which can allow for faster wage growth, said Moody's Analytics.

According to the research company, policymakers might keep monetary accommodative in order to stir up rapid employment gains and boost inflation to 2 percent target.

Federal Reserve Chairwoman Janet Yellen said at the end of September that most of her colleagues see it appropriate to raise interest rate this year if the economy continues on current path.

The U.S. Fed kept the interest rate unchanged in September and said it will need more evidence that the inflation and job market continue to improve before raising rates. Market investors now widely expected the central bank would move the rate up in December. Endi