US jobs figures boost recovery hopes

The pace of growth slowed from the previous month, when 282,000 new jobs were added, but edged past analysts’ forecasts of 213,000 as private businesses regained the confidence to take on new staff.

The solid monthly jobs report – seen as the single most important indicator of US economic health - added ballast to the US Federal Reserve’s argument to continue winding down its monthly bond-buying scheme.

The central bank began tapering the so-called quantitative easing programme in January, and has continued ratcheting it down by $10bn a month since then. Fed chairman Janet Yellen has repeatedly warned that she will keep a close eye on America’s employment situation, but Friday’s jobs report boosted expectations that she will continue steering the central bank along its current course.

“There remains a fair bit of slack in the labour market and while things are improving, there is almost nothing in today’s report to change the Federal Reserve’s outlook and plans,” said Dan Greenhaus, chief strategist at BTIG.

Milan Mulraine, at TD Securities, said the report did not offer any evidence of “break-out growth” but that it should be broadly considered “wart-free”.

“Overall, this was a very strong report with no obvious warts to detract from the underlying message of sustained improvement in economic activity – which is broadly consistent with the tone of other economic reports in recent weeks,” he said. “For the Fed, this report will likely be seen as a ‘business-as-usual’ report, which will mean no obvious reason for them to alter the current course of monetary policy when they meet later this month.”

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