Economists had expected the rate to remain at 7.5 percent – the lowest level since the end of 2008. However, since the u.S. Economy created more new jobs than expected in may, the numbers are considered mabig meaningful. Experts hope for a clearer trend direction in the coming months.
The number of employees outside agriculture increased by 175,000 positions compared to the previous month, according to further data from the ministry of labor. Economists had expected an increase of 163,000 jobs. However, the increase in the two previous months of march and april was corrected downward by a total of 12,000 points. The rate also rose because more people had registered as looking for work again.
Job growth of less than 200,000 per month is considered too weak for a significant reduction in the unemployment rate. As a result, the U.S. Federal reserve was not allowed to change its low interest rate policy for the time being. "This provides no basis for a premature curbing of the fed’s monthly securities purchases," said chief economist thomas gitzel of VP bank.
The financial markets should be pleased, as the moderate recovery of the US economy continued without the fed being allowed to jeopardize this with a change in its rate, said gitzel. The central bank intends to maintain its stimulus measures until the unemployment rate has fallen from the current 7.6 percent to 6.5 percent. The stock markets saw a corresponding upsurge in prices. Germany’s leading index, the dax, also rose.