U.S. jobs data suggest that the Fed would keep its stimulus By " La Recontra Oferta Newspaper " LRON at San Jose, CA US 15:40PM 06.07.2013 The U.S. non-farm payrolls grew by just 175,000 in May and unemployment rose to 7.6%, proving that ...still needed cash injection U.S. employers stepped up their hiring of staff in May in a sign that the U.S. economy is growing modestly but not enough to convince the Federal Reserve should reduce the amount of money being injected into the banking system. United States added 175,000 jobs last month, data showed on Friday nonfarm payroll Labor Department. May was the third consecutive month that hiring grew less than 200,000. Meanwhile, the unemployment rate rose a tenth of a percentage point to 7.6%. The increase could actually bring a hopeful sign that it was due to the number of workers grew entering the labor force. However, the relatively low recruitment could increase concerns that government austerity subtracting force this year is the economy, and could also dampen speculation that the Fed will soon cut bond purchases aimed at lowering rates interest and encourage employment. "The labor market may not be as strong as we thought," said Kevin Cummins, an economist at UBS in Stamford, Connecticut, before the disclosure of the data. EXPECTATION FOR AD The U.S. central bank responsible have advanced that could be close to reduce bond purchases despite modest economic growth. Budget cuts have led to a stoppage of recruitment in many government agencies and payroll could be naturally decreasing slowly. Templates government fell in May 3000. Some 4.4 million Americans have been unemployed for more than six months, about 3 million more than in pre-recession levels. The longer a worker is unemployed, the greater the risk that it will become difficult to return to the labor market. That could inflict lasting damage to the economy and lends urgency to the efforts of the Fed to stimulate the expansion
Posted on: Fri, 07 Jun 2013 22:44:59 +0000
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