THE US last month recorded its biggest increase in private sector job-creation since April, a sign that the economic recovery is gathering momentum.
Yesterday’s payroll data, showing businesses added 159,000 people in October, comfortably beat economists’ expectations. However, there was no progress in the unemployment rate, which is measured in a separate survey, and it remained steady at 9.6 per cent.
“There’s much more confidence in hiring,” said Hilda Solis, US labour secretary. But she added: “It’s not nearly enough. We have to keep the focus. Jobs have to be the number one priority.”
The data came in a crucial week for monetary policy, with the Federal Reserve announcing that it would buy $600 billion in treasury bonds between now and June to bolster the recovery.
Reaction in the stock market was muted as investors bet that the jobs data meant the Fed’s programme – known as quantitative easing – would not have to be expanded further. That sent the dollar to its sharpest increase in three weeks, rising 1.1 per cent versus the euro and 0.7 per cent versus the yen.
The SP 500 index was up 0.2 per cent in midday trading.
– (Copyright: Financial Times Limited 2010)
