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Economic Policy

United States employment on its


economy

Ishan Vadera
26 June 2015

United States Economy adds 280,000 jobs in


May
The increase was 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:
BBC
http://www.bbc.com/news/business-33025802