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US economy has regained all 8.7 million jobs lost during the recession

Saturday, June 7th 2014 - 04:24 UTC
Full article 15 comments
However the population has also grown 7% since then However the population has also grown 7% since then

Employers in the United States added 217,000 jobs in May, slightly below what analysts had been expecting. The US non-farm payroll figure was well below April's revised number of 282,000 jobs, but it was still the fourth month in a row of solid gains. The unemployment rate in May remained at 6.3%.

 Job gains have averaged 234,000 a month over the past three months, compared with 150,000 over the previous three months.

It's hoped the current labor market figures show that the US economy has emerged from its winter slump and is set to strengthen its recovery later in the year.

The jobs created in May now means that in the five years since the financial crisis, the United States has regained all the 8.7 million jobs it lost during the recession.

However, economists say the fact that the population of the US has grown by 7% over that period also has to be taken into account.

Also, the rate of pay growth remains sluggish. Average hourly earnings rose by just five cents last month. In the 12 months to the end of April, earnings grew at 2.1%, which suggests little upward pressure on wages.

Part of the reason for this is that many of the jobs being created are towards the lower end of the pay spectrum. This is reflected in the May numbers. Hotels, restaurants and entertainment companies added 39,000 jobs and retailers put on 12,500. Meanwhile, the construction sector added 6,000 new jobs.

Almost all of the new jobs were in the private sector, with government departments across the board only adding 1,000 workers.

“This is a solid report,” said Ian Shepherdson of Pantheon Macroeconomics, ”marking four straight (monthly) gains over 200,000; that hasn't happened for more than 14 years.”

Analysts said that Friday's non-farm payroll figures add to a picture showing a sturdy recovery in the US economy.

Recent figures ranging from automotive sales to manufacturing activity are suggesting that the economy could experience an annualized rate of growth of 3% in the current quarter.

Categories: Economy, Politics, United States.

Top Comments

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  • Anglotino


    The whole west is in perpetual decline theory will have to be put on the back burner a while longer then I guess.

    Jun 07th, 2014 - 08:09 am 0
  • ChrisR

    This would be good news if it were not for the fact that the US has learnt a few “wheezes” from The Cunt Brown © Jeremy Clarkson 2010 which includes letting long term unemployed be struck off the register as “no longer seeking employment”.

    This is of course true, what is the point of continuing to look for jobs when there are NO jobs to be had for all the EU grafters who now infest Britain? TCB had to acknowledge they had NO IDEA how many EU Citizens were now in the country: and it has gone downhill further under Camoron and Cleggie.

    I am pleased that the US seem to be making headway from what has been a bad time for all, but let us deal with reality, not fantasy.

    Jun 07th, 2014 - 12:50 pm 0
  • Bisley

    The official numbers on employment, inflation, economic growth and most other things, are all lies and fraud. The real rate of unemployment is at least twice what they claim, probably more; they keep changing the way they calculate these things, until they get the numbers they want.

    Jun 07th, 2014 - 07:50 pm 0
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