Friday, May 8, 2015

U.S. job growth regains steam, keeping Fed rate hike on track

The labor report, an inconsistent collection of lagging economic series adored by the media, rebounded last month. Traders trying to anticipate a change in Fed policy through labor statistics should be following the average weekly jobless claims and the Economic Activity Index. If the Fed is going to use the pretense of economic strength to raise rates, it shouldn't procrastinate. This message will be discussed ad nauseam in the coming months.

Headline: U.S. job growth regains steam, keeping Fed rate hike on track

WASHINGTON (Reuters) - U.S. job growth rebounded last month and the unemployment rate dropped to a near seven-year low of 5.4 percent, signs of a pick-up in economic momentum that could keep the Federal Reserve on track to hike interest rates this year.

Nonfarm payrolls increased 223,000 as gains in services sector jobs offset weakness in mining, the Labor Department said on Friday. The one percentage point decline in the unemployment rate to its lowest level since May 2008 came even as more people piled into the labour market.



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