Recovering Market: US data shows surge in jobs growth

Unemployment rates held steady as expected in June at 7.6%, as the no. of people in the work force continued to rise.

WASHINGTON: The United States added 195,000 jobs in June, the Labour Department said on Friday in a better-than-expected report that stoked speculation that the Federal Reserve will soon curb its large economic stimulus. Unemployment rates held steady as expected in June at 7.6%, as the number of people in the work force continued to rise, the Labour Department said. The unexpectedly strong jobs report suggested the economy was weathering the federal government’s tough sequester spending cutbacks that started in March, analysts said. It also sparked fresh speculation that the Fed’s policy-setting Federal Open Market Committee would begin to reduce its quantitative easing stimulus program soon. Fed Chairman Ben Bernanke has said the central bank could start to taper the $85 billion a month asset purchases in the coming months if the economy continued to improve. “Given Bernanke’s penchant to judge job growth from the six-month average, he is likely to see this report as evidence of economic strength,” said Chris Low of FTN Financial.

Published in The Express Tribune, July 7^th, 2013.

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