Jobless Rate Falls Again

Economy

Unemployment dropped to 4.7 percent, the lowest level in nearly a quarter-century and a sign the economy will end the year with a roar.

But the stock market fell into fresh turmoil on Friday. The Labor Department report rekindled inflation fears among investors already worried Southeast Asia’s financial crisis will crimp growth and corporate profits in the United States next year.

For now, though, the American economy seems once again to be defying analysts’ gloomy predictions.

October’s seasonally adjusted jobless rate, down from 4.9 percent in September, was the lowest since October 1973. The rate for adult women - 4 percent - was the smallest in nearly 28 years.

“Our economy is the strongest it’s been in a generation,” President Clinton declared at the White House.

Employers expanded their payrolls by 284,000 jobs, with a broad range of industries registering robust gains. In manufacturing alone, employers added 54,000 jobs - the largest gain in 7-1/2 years.

Meanwhile, average hourly wages for nonsupervisory workers jumped a strong 6 cents to a seasonally adjusted $12.41. That’s up 4.2 percent from a year earlier, the largest 12-month advance in eight years.

The stronger-than-expected report didn’t do anything to calm an already-jittery stock market.