In the month of March jobless rate fell to a 2 year low of 8.8 percent and the U.S employemnt recorded second straight month of solid gains. It underscores a decisive shift in the labor market which will help to underpin the economic recovery. The labor department said that in the last month the nonfarm payroll rose to 216,000 and it is regarded as the largest increase since the month of May. The gain was built on the 194,000 new positions that were added in the month of February. A report from the institute for supply management showed that the factory activity grew strongly in the month of march although in the month of February it was backed off a nearly 7 year high hit. The report of the payrolls confirmed the strength of the jobs market despite the signs of economic activity which has been head back early in the year because of the rise in the energy price and by the bad weather. The data was not strong enough to push the Federal Reserve off its ultra easy monetary policy course. Sean Increment, an economist at 4cast ltd in New York said that it is definite for another good step along the way which shows there is improvement at a gradual pace. It is not a disappointment note he added. The governemnt debt process extended losses on the view in the raise of interest rates by fed in the year end made the U.S stocks to open higher. The dollar climbed against the yen to a more than six month high. Since November the U.S jobless rate has now fallen a full percentage point. There is no price pressure shown by the report from earnings which were flat on the month. Some of the Fed officials warned about keeping the interest rates too low for too long some officials have argued that the economy is still in need of monitory support with inflation at a distant risk. Charles Plosser the president of Federal Reserve Bank of Philadelphia said that a stronger rebound in the inflation or economy is expected. Some expect to tale new policy actions soon and in an aggressive manner and many observers seem to be participating. The fed would raise overnight interest rates and this bet in the interest rates extended further loses on the data currently near zero. The private sector accounted for all the new jobs in the month of March and after the month of February it increased from 240,000 to 230,000.
By: Teni Sow | Senior Editor at Tambapress.com and Regular Contributor to Presspresser.com