Job growth in July gives glimmer of hope to US economy
The US Labor Department reported on Friday a surprisingly accelerated growth in the number of jobs available in the country in the month of July, offering a glimmer of hope towards the outlook of the country’s economy.
According to the report released by the Labor Department, nonfarm payrolls increased up to 117,000 in the month of July, beating the 85,000 increase prediction made by economists.
The news came as a welcome breather after the department released its June report showing an increase in the country’s unemployment rate to 9.2 percent from 9.1 percent last May.
“This shows that the US economy is not dead yet,” Kurt Karl, head of economic research and consulting at Swiss Re in New York, told reporters. “We have [the] potential to get back on track with moderate growth to a strong recovery next year.”
In addition to the job growth in July, the report also showed that the revised payroll count for the months of May and June amounted to 56,000 more jobs were added during these two months compared to what had been previously reported.
Stocks opened at a higher value at Wall Street following the news. However, it gave up gains to trade lower by late Friday morning.
Meanwhile, the US dollar continued to weaken as more investors were less enthusiastic to take risks as a result to present fears that the ugly fight between Democrats and Republicans to raise the US’ debt ceiling may hamper job growths in August.
“The fight over the debt ceiling created a new climate filled with uncertainty and anxiety that will cause businesses to change their clothes, so to speak, and either reduce hiring, freeze hiring or cut payrolls,” Tony Crescenzi—portfolio manager at PIMCO—explained to reporters.
Short URL: http://totalnewsonline.com/?p=570