This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-48557549
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
US jobs growth in shock May slowdown | US jobs growth in shock May slowdown |
(32 minutes later) | |
The US economy created far fewer jobs than expected last month and wages also rose less than forecast. | |
Some 75,000 jobs were created in May rather than the 185,000 expected by analysts, the Bureau of Labor Statistics said. | |
The dollar dropped as markets assumed that the slower-than-expected job growth meant a rate cut by the US Federal Reserve was more likely. | |
But the US unemployment rate remained at 3.6%, its lowest level for 50 years. | |
The US dollar fell more than 0.4% against the pound, the euro and the yen after the jobs figures were published. | |
"While the US jobless rate remains at its historic low of 3.6%, far fewer jobs are being created and wage rises are modest," said David Lamb, head of dealing at Fexco Corporate Payments. | |
"Add a weakening economy to the absence of inflation and the conventional answer is an interest rate cut," he added. | |
"While few expect the Fed to cut rates this month, the likelihood of a July cut has risen sharply - and as a result the greenback has swooned." | |
Monthly wage growth remained moderate, with average hourly earnings increasing by six cents, or 0.2%, in May following a similar gain in April. That lowered the annual increase in wages to 3.1% from 3.2%. | |
The number of people unemployed was "little changed" at 5.9 million, the Bureau of Labor Statistics said. |