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US job figures surge points to 'resilient economy'

Published 08/07/2016

There are more encouraging signs for the US economy despite recent shocks (AP)
There are more encouraging signs for the US economy despite recent shocks (AP)

Employers in the US shook off two months of weak hiring activity and added 287,000 jobs in June, a blistering pace that points to a resilient economy recovering from a weak winter and spring.

The hiring spurt marked a sharp improvement from May's poor showing, when just 11,000 jobs were added. A modest 144,000 jobs were created in April. May's figure was revised lower, while April's is higher than initially reported.

The unemployment rate rose to 4.9% from 4.7% as more Americans began looking for jobs, a sign they were more confident about their prospects.

The broadly positive report suggests the US economy was improving before Britain shook the world last month by voting to leave the European Union.

Despite the more positive data, it is still unlikely that the US Federal Reserve will increase interest rates soon.

Dennis de Jong, managing director of UFX, said: "It has been a month of huge shocks for the global economy, but what you can hear now is a massive sigh of relief from the markets. The disastrous May nonfarm payroll reading followed by Brexit were very painful, yet there is now a glimmer of light at the end of the tunnel.

"Although the Federal Reserve will take encouragement from this vital data, they simply aren't in a position to consider a rate hike at the moment. There is still huge uncertainty around the world, but the US economy has at least taken a step in the right direction here."

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