Mumbai: US employers added more jobs than forecast
in November, despite a slump in the housing and manufacturing
sectors, official data showed.
Employment levels in the US increased by 132,000 in
November against 79,000 in the previous month, which
was lower than estimated, a labor department report
The higher numbers were attributed to accelerated employment
at retailers, restaurants and health-care firms, while
manufacturers and construction jobs declined.
US jobless rate was at 4.5 per cent against a five-year
low of 4.4 per cent.
Federal Reserve, which lifted borrowing costs for two
years through June, are expected to keep its benchmark
interest rate at 5.25 per cent next week.
Traders are now betting on a Fed rate cut before or
at the March meeting. However the probability of such
a move have already fallen with futures prices on the
Chicago Board of Trade.
Bankers also said there is nothing in the labour department
would make the Fed cut rates so soon. Rather, the low
unemployment rate is likely to push up wage levels,
they pointed out.