U.S. employment rises more than expected in April

U.S. employment rises more than expected in April

PanARMENIAN.Net - U.S. employment rose more than expected in April, BBC News reported.

The latest U.S. non-farm payrolls show that 165,000 jobs were created last month. Economists had been predicting a figure closer to 145,000. The unemployment rate is now at its lowest level in four years, at 7.5%.

The strong increase in the jobs figures provided a boost to the markets. In New York, the Dow Jones Industrial Average jumped above the 15,000 level for the first time ever.

The drop in the unemployment rate reflected an increase in employment, rather than people leaving the workforce.

The U.S. Labor Department also revised its figures for March and February upwards. The February number was revised up to 332,000, the best monthly gain since May 2010. March non-farm payrolls were revised upwards by 50,000 to 138,000.

Giving the Obama administration's view of the figures, Alan Krueger, the chairman of the Council of Economic Advisers, said: "It is critical that we remain focused on pursuing policies to speed job creation and expand the middle class, as we continue to dig our way out of the deep hole that was caused by the severe recession that began in December 2007."

Joe Manimbo, market analyst at Western Union Business Solutions, said the numbers were "surprisingly positive".

"This shows the job market and the economy in general appear to be more resilient than investors had feared," he added.

But some analysts felt the details behind the headline numbers still pointed to a economy that continues to struggle. Construction employment fell and the payrolls in the manufacturing sector remained flat.

Tom Porcelli, U.S. economist at RBC Capital Markets, saw a more mixed picture in the figures.

"A couple of things drive this home, namely average weekly earnings are down and aggregate hours. Those are more forward looking metrics and how it will unfold in the fourth quarter that is not encouraging," he said. "This report confirms that the labour market backdrop remains very much uneven."

While the Dow Jones crossed the 15,000 barrier for the first time, the broader market S&P 500 also debuted above 1,600 within the first half hour of trading in New York.

The U.S. dollar gained more than 1% against the Japanese yen, hitting 99.18 yen. The euro lost 0.1% against the greenback, falling to $1.3059. Before the payroll numbers were released, it had been trading higher against the dollar.

Spot gold fell 0.4% immediately after the release of the figures, to $1,460.11 an ounce.

 Top stories
938 Russian citizens have registered in Armenia as private entrepreneurs between February 24 and March 22
Vahan Kerobyan said Armenia will most probably introduce a ban on the sale of Turkish products as well.
According to Vahan Kerobyan, a sharp decline in the travel industry was recorded last year, but now the situation has changed
Mher Grigoryan added that the government will ensure that the borrowed funds are spent efficiently.
Partner news