Good news for our North American readers today as the latest US nonfarm payrolls – the compiled name for all goods-producing, construction and manufacturing companies – revealed that 165,000 new jobs were created last month. That’s 20,000 more than expected by economists and means that unemployment in the US is now 7.5%, the lowest level in four years.
The US Labour Department also revised their figures for February and March upward and as a knock-on effect of these results there was a significant boost to the markets.
Most people seem pleasantly surprised that these figures are so impressive. But some analysts believe they are simply papering over the cracks, because average weekly earnings as a whole are down and so are aggregate hours and this may suggest further trouble ahead. If businesses are having to cut hours and lower wages then this is not really a good sign for the long-term.
Do you think the US economy has turned the corner now or will there be more trouble ahead?