The US reported stronger-than-expected jobs growth of 175,000 in May, a number that will encourage the Federal Reserve to start slowing its $85bn-a-month in asset purchases, but is unlikely to be strong enough to trigger such a taper when the central bank meets next week.
The unemployment rate rose from 7.5 to 7.6 per cent, despite the solid growth in jobs, as people returned to the jobs market with the total size of the labour force up by 420,000. However, a little of the strength in payrolls was offset by revisions to previous months, with jobs growth for March and April lowered by 12,000.
Overall, the figures suggest that the US economy is holding up well despite tax rises and public spending cuts, with demand growth strong enough to create jobs steadily. It brings the Fed’s goal of a "substantial improvement" in the outlook for the labour market closer, but is not the kind of blockbuster number that would end all concerns.
