Job cuts in April less severe than feared
The U.S. economy lost jobs for the fourth month in a row in April but at a slower pace than earlier in the year, easing fears that the economy was at a growing risk of slipping into a deep recession.
The Labor Department said on Friday that 20,000 jobs were shed last month, far fewer than the 80,000 that economists had anticipated. The national unemployment rate, which is compiled from a separate survey, unexpectedly fell to 5 percent from 5.1 percent in March.
Since 2008 began, some 321,000 jobs have been cut from payrolls, yet the economy expanded slightly during the first quarter and factories are still getting enough orders to keep hope alive that growth may gain momentum later in the year.
“The economy is just barely treading water,” said Richard Yamarone, chief economist for Argus Research in New York, after the jobs figures were issued. “It’s not imploding but it’s not desirable either.”
Stocks initially rose on the jobs report but turned negative in the afternoon on reports of rising oil prices and pressured corporate earnings http://paydayintime.com. Bond prices fell as investors bet the jobs report raised chances the Federal Reserve will be able to pause its rate-cutting campaign.
The dollar’s value hit a two-month peak against a basket of other currencies. “The market likes the U.S. jobs report and most are thinking that if we do slip into a recession, it’s going to be mild and brief,” said Matt Kassel, director of foreign exchange at ING Capital Markets in New York.
FACTORY ORDERS JUMP
A report at mid-morning from the Commerce Department, showing a stronger-than-expected 1.4 percent rise in March factory orders, added to the positive market tone.
Filed under: money by Fred