Financial News

  • 5 July 2014, 14:22

US Jobless Rate At Lowest In Six Years

The unemployment rate in the United States has dropped to 6.1%, according to official figures.

The Labor Department said a total of 288,000 jobs were created in June.

It was the fifth straight month of significant gains in the workforce.

The department revised upwards May gains of 217,000 jobs and 304,000 in April.

The jobless rate is now at the lowest level since September 2008.

The four-week average for unemployment benefits remained essentially unchanged at 315,000, according to theLabor Department.

The average has dropped by almost a tenth in 2014.

Unemployment benefit applications are seen by analysts as a proxy for redundancies, so the declines help indicate that companies are cutting fewer jobs than in the past.

Meanwhile, the US trade deficit fell in May as exports rose to an all-time high, which were helped by a spike in petroleum-based exports.

Imports dipped slightly in the month.

The Commerce Department said the trade deficit narrowed to 5.6% in May at $44.4bn (26bn) after hitting a two-year high of $47bn (27.5bn) in April.

The improving tone of the labour market will be welcomed by the Federal Reserve and could spur debate on the timing of the first interest rate increase by the US central bank.

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