UK: Signs of a stable recovery in the US

PJ: It is not idle curiosity that attracts interest in the US economy. When the US collapsed into the worst recession since the great depression it caused a domino effect in much of the world, primarily in the EU. While other countries have their own debt problems of their own making, fingers are cross that the surge in the US economy, which remains the largest in the world, will create economic enthusiasm abroad.

The Telegraph

US unemployment falls faster than expected
US unemployment fell to almost a two-year low, the strongest sign yet that a sustainable recovery is under way in the world's biggest economy.


Non-farm payrolls increased 192,000, the US Labor Department said on Friday, in line with expectations. Data for December and January was revised to show 58,000 more jobs were created than previously estimated.

The last time payrolls grew so much was last May, when the government's hiring of temporary workers for a census boosted payrolls hugely.

As in previous months, the private sector accounted for all the job gains in February, with an addition of 222,000 positions - the largest gain since April 2010. That was up from 68,000 in January.

Jobs were created in manufacturing, construction and temporary help agencies, while state and local government payrolls slumped.

The overall unemployment rate dipped to 8.9pc, the lowest since April 2009, from 9.0 percent in January as more people reported finding work.

"We have moved into the expansion phase of the economic cycle and the economy is self-sustaining," said Brian Levitt, an economist at OppenheimerFunds in New York.

The dollar edged higher against the euro, however US stocks fell on concern that pay increases are not keeping up with increases in fuel prices, and will hold back consumer spending.

"The numbers confirm that labor market conditions are gradually improving. It is critical that the pace of improvement accelerate over the course of the year given the overall size of the unemployment problem," said Mohamed El-Erian, co-chief investment officer of PIMCO in Newport Beach, California.

Still, February's bounce in employment after payrolls were depressed by extreme weather in January is unlikely to sway the Federal Reserve from its ultra-easy monetary policies.

The jobless rate has dropped 0.9 of a percentage point since November. The rate is derived from a survey of households, while the job creation figure comes from a separate survey of employers. The household survey showed more people were employed in February.

http://www.telegraph.co.uk/finance/economics/8362187/US-unemployment-falls-faster-than-expected.html