The valley lost 2,200 jobs in September, according to the California Employment Development Department's latest monthly labor report for Santa Clara and San Benito counties.

The unemployment rate remained at 5 percent for the third consecutive month, but the mood is darkening. Last October, economists were upbeat, saying the valley's economy was kicking into a higher gear after its prolonged recovery from the dot-com bust.

Now, some worry that a slowdown could persist.

"We're doing better than the state and the nation, but we're beginning to slow a little because we do have exposure to real estate and finance," said Stephen Levy, director of the Center for Continuing Study of the California Economy. "We're somewhat protected from the downturn, but we're not completely immune."

But others were encouraged by the monthly numbers. Dick Carlson, head of Spectrum Economics in Palo Alto, said a drop in temporary jobs and a surge in manufacturing jobs could indicate some companies are confident enough to convert temps to permanent employees.

The professional and business services sector added 2,900 jobs, more than 40 percent of which involved computer systems design and related services. Similarly, manufacturing jobs gained 1,700 jobs over the past year, mostly

to make computer and electronic products.

"The weak dollar is a huge help to both the employment and profitability of the companies," Carlson said. "The majority of their sales are overseas now."

Doreen Rivera of San Jose is among those feeling the squeeze from the downturn in the real estate market. Every job she's held with mortgage companies over the past 15 years has ended with a layoff after consolidations, cutbacks and corporate moves, so she's hunting for a job with a medical or legal company.

Her main goal? "Stability, No. 1," said Rivera, 33.

But Rivera has noticed that companies are screening out candidates who don't have experience in the industry. Describing the job market, she said, "It feels pretty tight."

The state labor report contains conflicting data about the health of the valley's job market:

• The 5 percent unemployment rate is higher than the 4.3 percent rate a year ago but lower than the 5.4 percent jobless rate statewide, an indication that the valley's economy is more resilient.

• Although the valley lost 2,200 jobs in September, that's lower than the 17-year average drop for the month.

• Taking a longer view, 12,800 jobs were added over the past year, a 1.4 percent growth rate. The expansion was prominent in health care (1,600 jobs), food services (1,500) and education (1,300).