US companies shed fewer jobs than expected last month, but only because the Government hired thousands of workers. Total non-farm payroll employment fell by 48,000 in April from March, the Labour Department said today, less than the decline of 58,000 forecast. However, if the government jobs are excluded, the US economy actually lost 80,000 jobs. The latest increase in the jobless total pushed the unemployment rate up to 6.0pc from 5.8pc in March - its highest level so far this year and means that in the past three months, more than half a million US workers have lost their jobs.
This could result in a drop in consumer confidence next month when the "Baghdad bounce" that boosted confidence in April winds down, and will impact on consumer spending decisions. Consumer spending accounts for around two thirds of the US economy. A sharp fall in manufacturing jobs led the the weakness in April non-farm payroll employment. The sector shed 95,000 jobs, the largest fall in 15 months, while the airline transportation sector was also weak, with almost 20,000 jobs lost. //www.fxcentre.com