Economic PolicyUnited States employment on its economy
Ishan Vadera26 June 2015
United States Economy adds 280,000 jobs in MayThe increasewas
more than analysts had expected and the biggest this year.
Economists described it as "encouraging".The jobless rate, which is
based on a different survey, crept up to 5.5% from 5.4%, but this
was explained by more people looking for jobs.Average earnings rose
0.3% compared with the previous month, to $24.96 an hour.This is a
measure closely watched by policymakers as they assess when to
start raising interest rates.Consistently higher wages, as well as
the improving jobs market, will add to the argument for a rate
increase, which most observers currently expect to happen in
September, rather than at its next meeting in June."More people
working more hours and making more money is a very virtuous
combination for growth," said Tom Simons from Jefferies."The May
employment report is very encouraging."Return to growth?The economy
is expected to return to growth in the second quarter, after an
unexpected contraction in the first three months of the year.It
shrank by 0.7% between January and March but that was seen by many
as an aberration, largely caused by an exceptionally harsh winter
and a West Coast ports strike that severely damaged exports.The
Labor Department also revised the jobs figures from March and
April. March was revised up to 119,000 from 85,000, while April was
revised a touch lower to 221,000 from 223,000.It means that over
the past three months, companies have added an average of 207,000
jobs."Job gains occurred in professional and business services,
leisure and hospitality, and health care,"the Labor Department
said.
The US economy added 280,000 jobs in May, the US Labor
Department has said.As we all know that most of the developed and
developing countries are facing inflation these days. There are
numerous of reasons for this, however, an article from BBC reveals
that the US economy is on the horizon, its looking to get better.
The jobless rate, which is based on a different survey, crept up to
5.5% from 5.4%, but this was explained by more people looking for
jobs. The average earnings rose 0.3% compared with the previous
month.Consistently higher wages, as well as the improving jobs
market, will add to the argument for a rate increase, which most
observers currently expect to happen in September, rather than at
its next meeting in June.The Labor Department also revised the jobs
figures from March and April. March was revised up to 119,000 from
85,000, while April was revised a touch lower to 221,000 from
223,000.It means that over the past three months, companies have
added an average of 207,000 jobs.
This gives a glimpse of hope that the economy is on the bounce
back from the horrible state it was in for the last decade.
Reference:BBChttp://www.bbc.com/news/business-33025802
