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US economy adds 209,000 jobs, but unemployment rises
August 1, 2014, 5:19 pm

The US added 209,000 jobs in July, down from 298,000 in June [AP]

The US added 209,000 jobs in July, down from 298,000 in June [AP]

For the sixth consecutive month, new hiring in the US is above the 200,000 level.

Statistics from the US Department of Labor showed that 209,000 jobs were added to the economy in July, lower than the 225,000 to 233,000 figures predicted by most analysts.

In June, employees hired 298,000 job-seekers. The June figure was revised from an initial 284,000.

Although July’s figures are lower than the previous few months, the six-month hiring trend is the longest since the 1990s and signals that the US economy has rebound since this year’s colder-than-normal temperatures contracted growth in the first quarter.

Growth in the second quarter jumped to 4 per cent on strong exports, improved industrial output, and robust consumer confidence.

Economists had expected that the generally good data about the US economy this week could pressure the Federal Reserve to begin raising interest rates before the fourth quarter.

But the slight rise in the unemployment rate – from 6.1 to 6.2 per cent – has dampened the momentum for such a move.

The rise to 6.2 per cent indicates that more Americans are looking, and not finding work. Generally, unemployed peoples are only factored into the statistics if they are engaged in looking for jobs.

A greater number of job-seekers is traditionally considered a positive sign reflecting optimism in employment prospects.

Source: Agencies

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