Sunday, May 8, 2011

USA: hiring is accelerating, but unemployment rises

Hiring has accelerated in the United States in April, but this has not prevented the unemployment rate rise after four months of declines. The U.S. economy created 244,000 net new jobs in seasonally adjusted data that month, or 10.4% more than in March, said the monthly report on employment in the Department of Labor, published Friday 6 May in Washington.

It's the largest increase in employment since May 2009. Contrary to what happened then, where the bulk of the increase was caused by temporary hires in the public sector, it is the result of good dynamic private sector. The increase in hiring has been particularly strong in the manufacturing sector (32%).

However, improvement in employment has not prevented the rise of unemployment, from 0.2 points to 9% after four months of declines. Analysts had forecast instead on a stable unemployment rate. The apparent distortion in the numbers is the fact that the unemployment rate and the number of hires are made after two separate investigations, the first conducted with a sample of households, the second with a sample of firms.

It could be a sign that many jobs have benefited people who have a job, or announce an adjustment of the figures next month. Despite the good numbers of hires, the leaders of the central bank (Fed) believe that the resumption of labor incurred in the first quarter of 2010 is still slow.

The country has indeed returned as 1.7 million jobs on some 8.7 million who have been officially lost during the crisis. According to ministry figures, the rate of participation in the workforce, which measures the ratio of assets compared to all persons of working age, remained at 64.2% for the fourth consecutive month, its lowest level since March 2010.

This is a sign that many discouraged unemployed or excluded from the workforce for other reasons have not yet begun to look for work.

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