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US employers likely stepped up hiring in September

CHRISTOPHER S. RUGABER
AP Economics Writer

WASHINGTON (AP) — U.S. employers may have produced 200,000-plus job growth in September, a potentially reassuring sign after a hiring slowdown in August.

Economists have forecast that employers added 215,000 jobs last month, according to a survey by FactSet. That would match the average monthly gain this year, up from last year’s average of 194,000. The unemployment rate is expected to remain 6.1 percent.

The Labor Department will issue the September jobs report at 8:30 a.m. Eastern time Friday.

In August, employers added just 142,000 jobs after topping 200,000 for six straight months, the longest such stretch since 1997. Even if the government reports that hiring was subpar for a second straight month, some economists say it wouldn’t be cause for alarm. Most other recent data indicate that the economy is expanding at a healthy pace.

And September job figures have often been skewed by seasonal quirks, such as many students giving up summer jobs and teachers returning to work.

The figures will be studied by Federal Reserve policymakers, who are tracking the job market’s various gauges to determine whether the economy is returning to full health. Strong hiring could raise pressure on the Fed to increase its benchmark short-term interest rate, which it’s kept near zero for nearly six years to support the economy.

August’s slowdown was attributed in part to temporary factors, such as a walkout by 25,000 workers at Market Basket, a Northeastern grocery store chain. That dispute has since been resolved, and the return of those workers could boost September’s job total.

Auto manufacturing jobs had also fallen in August, even though car sales have been strong this year. That has led many economists to forecast a rebound in auto manufacturing jobs in September.

The growth of the economy has been healthy enough that most analysts predict that hiring will remain solid even if one or two months occasionally produce disappointments.

The annual pace of economic growth is expected to remain above 3 percent for the rest of the year. Business investment is picking up, and consumer spending is growing at a steady if modest pace.

Joseph LaVorgna, an economist at Deutsche Bank, notes that productivity — the amount of output per hour of work — is rising 1 percent annually. LaVorgna thinks the economy is expanding at a 3 percent annual pace and that hiring should grow roughly 2 percent a year. That would translate into 230,000 jobs each month, he calculates.

LaVorgna also notes that employee tax withholding receipts are growing at a brisk pace, suggesting that companies are stepping up hiring.

And just 287,000 people sought unemployment benefits last week, not far from a seven-year low reached in July. The number of people receiving benefits has reached an eight-year low, a sign that companies are confident enough in their customer demand to retain their staff levels.

Business investment in equipment and buildings rose 9.7 percent in the second quarter, the second-highest figure in the past three years. And orders for capital goods, a sign of future business spending, rose in August.

Americans have generally spent cautiously this year, held back by sluggish wage growth. Average hourly pay has barely kept up with inflation in the past three years.

But Americans spent more in August. When adjusted for inflation, spending that month rose at the fastest pace in six months.

Still, there are weak spots. Home sales slipped in August as investors cut back on their purchases, and higher prices have made homes less affordable, particularly for first-time buyers who face tighter credit standards.

Fewer Americans signed contracts to buy homes in August, the National Association of Realtors said this week. That suggests that home sales could slip again in coming months.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. 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But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. 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If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. 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