Financial News

  • 9 June 2014, 9:49

US Recovers 8.7 Million Jobs Lost In Recession

The US economy has now recouped all the 8.7 million jobs that were lost during the recession.

The Labor Department made the announcement as it was confirmed the steady improvement in hiring seen since the end of winter continued in May, with 217,000 net new jobs being created - in line with economists' forecasts.

The jobless rate remained at 6.3%.

Every major sector recruited - with the strongest growth recorded in services.

Despite the slowdown from April's 282,000 gain,Maymarked a fourth straight month with job gains above 200,000 andan important milestone in returning to pre-recession levels.

The LaborDepartment said employment had now risen by 8.8 million since hitting atrough in February 2010.

Average hourly earnings, which are being closely watched forsigns of how fast labour market slack is easing, rose five centslast month.

The pace of hiring adds to data ranging from automobilesales to services and factory sector activity that hassuggested annualised GDP growth this quarter will top 3%.

The economy contracted at a 1% rate in the firstquarter, dragged down by unusually harsh winter weather and aslow pace of inventory building by businesses.

Economists expect previously discouraged workers tore-enter the labour force over the course of the year.

Such a move would be welcomed bythe Federal Reserve, which has cited low labour forceparticipation as one of the reasons for maintaining anextraordinarily easy monetary policy.