The labour market is the key to the US economy. Full employment is not only one of the statutory objectives of US monetary policy (along with price stability), its statistical base provides insights into the tendencies for activity, wages, prices and productivity. Yet since the end of the 2007-2009recession, the famous labour market report has become much harder to interpret. Despite the addition of more than 11 million new jobs since year-end 2010, which helped slash the unemployment rate to 5.5% in May (from a peak of 10% in late 2009), the FOMC press release continues to mention thepersistence of under employment, notes Group Economic Research.
In May, 280,000 jobs were created, which helped maintain year-on-year job growth above 3 million. After a timid start, the job market recovery became much more robust in late summer 2013. After slowing briefly the following winter, monthly job creations have held consistently above 200,000 (except last March, when they were limited to 119,000 after another rigorous winter temporarily hampered hiring). On three occasions, the monthly growth of non-farm employment even exceeded 300,000, adds Group Economic Research.
