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| US economy adds 175,000 jobs in May | US economy adds 175,000 jobs in May |
| (35 minutes later) | |
| US employment rose by slightly more than economists had predicted during May. | US employment rose by slightly more than economists had predicted during May. |
| The latest US non-farm payrolls show that 175,000 jobs were created last month. But the unemployment rate increased slightly to 7.6%. | The latest US non-farm payrolls show that 175,000 jobs were created last month. But the unemployment rate increased slightly to 7.6%. |
| Shares had mostly fallen in the run up to the figures, as investors worried that a strong report could lead the Fed to slow its bond-buying programme. | Shares had mostly fallen in the run up to the figures, as investors worried that a strong report could lead the Fed to slow its bond-buying programme. |
| That programme has fired up a rally in the US equities market this year. | That programme has fired up a rally in the US equities market this year. |
| Economists surveyed by Reuters had expected the US to have added 170,000 jobs in May, with the unemployment rate holding steady at 7.5%. | Economists surveyed by Reuters had expected the US to have added 170,000 jobs in May, with the unemployment rate holding steady at 7.5%. |
| May was the third month in a row that non-farm payrolls increased by less than 200,000, stoking fears that the US government austerity might be harming the economy. | |
| The spending cuts were highlighted in the latest jobs report as the federal government cut 14,000 jobs. There were also job cuts in manufacturing. | |
| However there were job gains in professional and business services, leisure and hospitality and retail. | |
| 'Good number' | |
| The latest figures mean that it appears unlikely that the Fed is about to rein in the bond-buying programme, which is aimed at lowering interest rates and boosting employment. | |
| "What's made a good number is the fact that it's not extreme on either side, and gives the prospect that investors are looking for, which is a continued slow recovery without any likelihood of any rapid rate rise by the federal government," said Rick Meckler, president of LibertyView Capital Management in New Jersey. | |
| And Chris Williamson, chief economist at Markit, said the Fed would "watch the incoming data flow on business activity and demand closely over the coming months before making clear signals on policy changes". |