-US Labor Department
The US unexpectedly surprised with soft employment data, the world's number one economy created fewer jobs than predicted, while the jobless rate remained unchanged, according to the Labor Department. The US economy added 126,000 jobs in March, compared with revised 264,000 new jobs in the previous month. Economists, however, had anticipated an 245,000 gain. The disappointing jobs data comes after twelve consecutive months of the US economy adding over 200,000 jobs a month. However, the jobless rate remained at 5.5% last month, in line with expectations, which is the lowest reading since mid-2008. The number of unemployed Americans was little changed at 8.6 million. In 2014, the US added 3.1 million jobs, or 260,000 jobs per month. Last year was the best year for job growth since 1999.
Earlier in the week, the ADP report on the US labour market also surprised to the downside, as fewer jobs were added in March than predicted. ADP non-farm employment change increased by 189,000 in March, considerably below expectations of a 225,000 rise. However, last month's data was revised upwards to 214,000 from 212,000. Last month, Fed policy makers downgraded their economic outlook. Yet at the same time, also opened up the probability of hiking the benchmark funds rate as early as June.
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