Payroll employment came in at 156,000 in September, a little less than the 170,000 we were expecting. The largest miss was in the government sector as opposed to the private sector, which was reassuring given the slowdown in overall economic growth we have seen this year. State and local hiring is losing momentum after driving gains in recent years. More encouraging was the composition of job gains, which were dominated by professional hires; they surged 67,000, mostly full-time over temporary hires. That confirms that college graduates are regaining ground lost to the crisis, and adding to wage growth.