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Byline: LAURA MANDARO
Job growth remained strong in August, providing the economy with a firm footing for what's increasingly likely to be a tougher few months following Hurricane Katrina's destruction.
Nonfarm payrolls rose 169,000, below estimates for 190,000. But June and July jobs were revised higher by a combined 44,000.
Significantly, the jobless rate fell to 4.9%, the lowest in four years.
"The labor market has some forward momentum, and it's going to need it because we're going to be hit with some strong headwinds in next month's jobs report," said Michael Gregory, senior economist for BMO Nesbitt Burns.
By "headwinds," read Katrina.
The 140-a-mile per hour hurricane slammed the Gulf Coast and flooded New Orleans, leaving the city uninhabitable for months. More than 1 million Gulf residents may be homeless.