US job creation soared last month as hospitals, hotels and schools raced to add new workers, wiping away fears that November would be a lackluster month, according to a key government report Friday.

Payrolls also got a boost as autoworkers were back on the job after a six-week nationwide strike at General Motors plants, according to the Labor Department.

The surprise hiring burst is sure to delight President Donald Trump as he faces impeachment and a bitter reelection campaign.

US firms added a massive 266,000 net new positions, shattering economists' expectations, while the jobless rate fell a tenth of a point to 3.5 per cent, mainly because of a small decline in the workforce

Job gains in September and October also were revised upward by a total of 41,000, underscoring the strength of labor markets.

Economists in recent days had begun to worry that America's appetite for workers was on the wane, as some signs pointed to slackening demand for labor as well as a dwindling supply of workers.

But the continued hiring bonanza should bolster the Federal Reserve's decision to keep the benchmark interest rate stable after three cuts this year, with central bankers believing more stimulus is unnecessary.

Job creation has slowed this year, however, as employers on average have added 180,000 workers a month, down from the 223,000 average monthly gains in 2018.

Wages crept higher in November but more slowly than forecast.

Meanwhile, the dip in the jobless rate came with a drop in labor force as people left the job hunt or retired.

&nbsp;

US job creation soared last month as hospitals, hotels and schools raced to add new workers, wiping away fears that November would be a lackluster month, according to a key government report Friday.

US job creation soared last month as hospitals, hotels and schools raced to add new workers, wiping away fears that November would be a lackluster month, according to a key government report Friday. Payrolls also got a boost as autoworkers were back on the job after a six-week nationwide strike at General Motors plants, according to the Labor Department. The surprise hiring burst is sure to delight President Donald Trump as he faces impeachment and a bitter reelection campaign. US firms added a massive 266,000 net new positions, shattering economists' expectations, while the jobless rate fell a tenth of a point to 3.5 per cent, mainly because of a small decline in the workforce Job gains in September and October also were revised upward by a total of 41,000, underscoring the strength of labor markets. Economists in recent days had begun to worry that America's appetite for workers was on the wane, as some signs pointed to slackening demand for labor as well as a dwindling supply of workers. But the continued hiring bonanza should bolster the Federal Reserve's decision to keep the benchmark interest rate stable after three cuts this year, with central bankers believing more stimulus is unnecessary. Job creation has slowed this year, however, as employers on average have added 180,000 workers a month, down from the 223,000 average monthly gains in 2018. Wages crept higher in November but more slowly than forecast. Meanwhile, the dip in the jobless rate came with a drop in labor force as people left the job hunt or retired.

US adds 266,000 jobs in November, unemployment falls to 3.5%

Almost half of all Europeans fear <a href="https://www.wionews.com/opinions/climate-change-hits-india-much-work-needs-to-be-done-262038">climate change</a> more than losing a job or of a terrorist attack, a study by the European Investment Bank (EIB) showed on Thursday as EU lawmakers declared a “climate emergency”.&nbsp;

The symbolic vote by lawmakers was designed to pressure for action against <a href="https://www.wionews.com/opinions/bearing-brunt-of-climate-change-240729">global warming</a> at an upcoming United Nations summit.

<a href="https://www.wionews.com/photos/greta-thunberg-how-one-school-girls-climate-change-campaign-recruited-millions-249747">In Pictures: Greta Thunberg — How one school girl's climate change campaign recruited millions</a>

The EIB survey of 30,000 respondents from 30 countries, including China and the United States, showed 47% of Europeans saw climate change as the number one threat in their lives, above unemployment, large scale migration and concerns about terrorism.

“European citizens are highly concerned about climate change and its impact on their everyday life and future,” said Emma Navarro, EIB Vice-President responsible for climate action and the environment.

“Interestingly, many of them are optimistic about the possibility to reverse it. Unfortunately, science says otherwise. We have one shot at limiting global warming and mitigating its effects,” she said.

The EIB, owned by European Union governments, is the world’s largest international public lending institution and has the task of financing climate-change-related investment that is a priority for the new European Commission.

The survey, the first of four planned by the EIB, showed the level of concern about climate change was even higher in China than the EU, with 73% of respondents seeing it as the biggest threat to society, compared to 39% in the United States, where most people worried more about access to health services.

The study also showed that 41% of young Europeans between the age of 15 and 29, especially from southern countries like Spain, Greece and France thought they would have to move to another country because of the changing climate.

“Overall, 82% of Europeans report that climate change has an impact on their everyday lives, a perception that goes up to 98% in China and 76% in the United States,” the study said.

The incoming European Commission, which will start on Dec 1, wants to make the whole of the European Union an area that is neutral in terms of carbon dioxide emissions by 2050 after slashing emissions by 50% by 2030. It still requires the consent of all EU governments before such a target becomes binding, but some countries which still heavily depend on coal like Poland, oppose such ambition.

Almost half of all Europeans fear climate change more than losing a job or of a terrorist attack, a study by the European Investment Bank (EIB) showed on Thursday as EU lawmakers declared a “climate emergency”.

Almost half of all Europeans fear climate change more than losing a job or of a terrorist attack, a study by the European Investment Bank (EIB) showed on Thursday as EU lawmakers declared a “climate emergency”. The symbolic vote by lawmakers was designed to pressure for action against global warming at an upcoming United Nations summit. In Pictures: Greta Thunberg — How one school girl's climate change campaign recruited millions The EIB survey of 30,000 respondents from 30 countries, including China and the United States, showed 47% of Europeans saw climate change as the number one threat in their lives, above unemployment, large scale migration and concerns about terrorism. “European citizens are highly concerned about climate change and its impact on their everyday life and future,” said Emma Navarro, EIB Vice-President responsible for climate action and the environment. “Interestingly, many of them are optimistic about the possibility to reverse it. Unfortunately, science says otherwise. We have one shot at limiting global warming and mitigating its effects,” she said. The EIB, owned by European Union governments, is the world’s largest international public lending institution and has the task of financing climate-change-related investment that is a priority for the new European Commission. The survey, the first of four planned by the EIB, showed the level of concern about climate change was even higher in China than the EU, with 73% of respondents seeing it as the biggest threat to society, compared to 39% in the United States, where most people worried more about access to health services. The study also showed that 41% of young Europeans between the age of 15 and 29, especially from southern countries like Spain, Greece and France thought they would have to move to another country because of the changing climate. “Overall, 82% of Europeans report that climate change has an impact on their everyday lives, a perception that goes up to 98% in China and 76% in the United States,” the study said. The incoming European Commission, which will start on Dec 1, wants to make the whole of the European Union an area that is neutral in terms of carbon dioxide emissions by 2050 after slashing emissions by 50% by 2030. It still requires the consent of all EU governments before such a target becomes binding, but some countries which still heavily depend on coal like Poland, oppose such ambition.

Climate change scares Europeans more than terrorism, unemployment or migration

The United States labour market took a punch in October from an extended strike at General Motors but the economy continued to add jobs at a solid pace, according to official data released Friday.

Employers added 128,000 net new jobs, well above expectations and gains in the prior months were revised up sharply, the Labor Department reported in the closely-watched monthly employment report.

Meanwhile, wages continued to climb, even as the jobless rate rose a notch to a still-low 3.6 per cent, matching economists' expectations.

Nearly 50,000 GM workers were called back to work this week following a six-week strike but not before the stoppage put a deep dent in October's auto industry employment levels.

The ranks of auto workers shrank by more than 41,000, according to the report,&nbsp;the biggest drop in that sector since October 2009, when the American auto giant was at the brink of collapse.

Elsewhere hiring was resilient, averting the dire outcomes some economists had predicted, as bars, restaurants and financial services companies continued to snap up new workers.

And even with the GM strike, the job gains in August and September were revised up by a combined 95,000, the Labor Department said.

Overall job growth has slowed in 2019 to a monthly average of 167,000, compared to 223,000 last year, as the supply of available workers dwindles and skittish companies hold off on adding workers amid concerns about the US-China trade war.

But low unemployment and steady job growth should continue to support consumer spending, which represents the lion's share of US economic activity.

Compared to October of last year, worker pay rose three per cent, meaning year-on-year wage gains have been at or above three per cent for 15 straight months.

The Federal Reserve this week cut interest rates for the third time in a row, moving to shield the economy from a global slowdown and the effects of US President Donald Trump's trade wars.

But Fed Chairman Jerome Powell signalled Wednesday the central bank likely will hold off on providing any further stimulus to the economy.

The United States labour market took a punch in October from an extended strike at General Motors but the economy continued to add jobs at a solid pace, according to official data released Friday.

The United States labour market took a punch in October from an extended strike at General Motors but the economy continued to add jobs at a solid pace, according to official data released Friday. Employers added 128,000 net new jobs, well above expectations and gains in the prior months were revised up sharply, the Labor Department reported in the closely-watched monthly employment report. Meanwhile, wages continued to climb, even as the jobless rate rose a notch to a still-low 3.6 per cent, matching economists' expectations. Nearly 50,000 GM workers were called back to work this week following a six-week strike but not before the stoppage put a deep dent in October's auto industry employment levels. The ranks of auto workers shrank by more than 41,000, according to the report, the biggest drop in that sector since October 2009, when the American auto giant was at the brink of collapse. Elsewhere hiring was resilient, averting the dire outcomes some economists had predicted, as bars, restaurants and financial services companies continued to snap up new workers. And even with the GM strike, the job gains in August and September were revised up by a combined 95,000, the Labor Department said. Overall job growth has slowed in 2019 to a monthly average of 167,000, compared to 223,000 last year, as the supply of available workers dwindles and skittish companies hold off on adding workers amid concerns about the US-China trade war. But low unemployment and steady job growth should continue to support consumer spending, which represents the lion's share of US economic activity. Compared to October of last year, worker pay rose three per cent, meaning year-on-year wage gains have been at or above three per cent for 15 straight months. The Federal Reserve this week cut interest rates for the third time in a row, moving to shield the economy from a global slowdown and the effects of US President Donald Trump's trade wars. But Fed Chairman Jerome Powell signalled Wednesday the central bank likely will hold off on providing any further stimulus to the economy.

United States adds 128,000 jobs in October, jobless rate rises to 3.6% amid General Motors strike

Britain's jobs boom has weakened in the <a href="https://www.wionews.com/world/european-unions-brexit-minister-says-united-kingdoms-proposals-fall-short-need-agreement-by-end-of-day-256061">approach to Brexit</a> with the number of people in work unexpectedly falling by the most in over four years and unemployment rising, official data showed on Tuesday.

Employment fell by 56,000 to 32.69 million in the three months to August, the Office for National Statistics said. Economists polled by Reuters had expected growth of 23,000.

The number of people out of work rose by 22,000 to just over 1.31 million, the ONS said.

Britain's strong labour market has been the silver lining for the economy since the <a href="https://www.wionews.com/world/brexit-deal-possible-this-week-says-european-union-chief-negotiator-michel-barnier-256023">Brexit referendum in 2016</a>, something many analysts attribute, in part, to firms hiring workers that they can later lay off rather than making longer-term commitments to investment.

But there were signs in Tuesday's figures that employers were turning more cautious.

The unemployment rate unexpectedly rose to 3.9 per cent&nbsp;from 3.8 per cent, which had been its joint-lowest since the mid-1970s, while vacancies fell to their lowest level since the three months to November 2017.

"Challenging economic conditions are starting to take the shine off the UK’s job boom," Tej Parikh, chief economist at the Institute of Directors, an employers group, said.

"Business leaders’ long-lasting drive to expand their workforce has put the labour market in a strong position. However, firms are now increasingly coming up against uncertainty and the shrinking supply of available talent."

Many employers are worried about Prime Minister Boris Johnson's pledge to take Britain out of the European Union on October 31 without a transition deal to smooth the economic shock if necessary. However, lawmakers have passed legislation that they say will force him to seek a delay from Brussels.

A survey published separately on Tuesday by Britain's main auto industry group showed jobs cuts at one in three firms in the sector, which risks being a big loser from Brexit. That was up from one in eight just under a year ago.

As well as worries about Brexit, Britain's economy is feeling the drag from rising US-China trade tensions which have weighed on global growth.

The ONS labour market data showed a dip in the pace of pay growth which recently hit its fastest in more than 10 years.

Total earnings growth, including bonuses, rose by an annual 3.8 per cent&nbsp;in the three months to August, slowing from 3.9 per cent&nbsp;in the three months to July and weaker than the median forecast of 4.0 per cent&nbsp;in the Reuters poll.

Excluding bonuses, which smoothes out some volatility, pay growth similarly slowed slightly to 3.8 per cent, but was a touch ahead of the Reuters poll forecast of 3.7 per cent.

The trend in pay growth is being watched closely by the Bank of England.

Deputy Governor Dave Ramsden said in a newspaper interview published on Sunday that wage costs were "picking up quite significantly, which will drive domestic inflationary pressure."

However, the BoE is waiting for more clarity on Brexit before any decision to resume its gradual and limited programme of interest rates hikes.

Britain's jobs boom has weakened in the approach to Brexit with the number of people in work unexpectedly falling by the most in over four years and unemployment rising, official data showed on Tuesday.

Britain's jobs boom has weakened in the approach to Brexit with the number of people in work unexpectedly falling by the most in over four years and unemployment rising, official data showed on Tuesday. Employment fell by 56,000 to 32.69 million in the three months to August, the Office for National Statistics said. Economists polled by Reuters had expected growth of 23,000. The number of people out of work rose by 22,000 to just over 1.31 million, the ONS said. Britain's strong labour market has been the silver lining for the economy since the Brexit referendum in 2016, something many analysts attribute, in part, to firms hiring workers that they can later lay off rather than making longer-term commitments to investment. But there were signs in Tuesday's figures that employers were turning more cautious. The unemployment rate unexpectedly rose to 3.9 per cent from 3.8 per cent, which had been its joint-lowest since the mid-1970s, while vacancies fell to their lowest level since the three months to November 2017. "Challenging economic conditions are starting to take the shine off the UK’s job boom," Tej Parikh, chief economist at the Institute of Directors, an employers group, said. "Business leaders’ long-lasting drive to expand their workforce has put the labour market in a strong position. However, firms are now increasingly coming up against uncertainty and the shrinking supply of available talent." Many employers are worried about Prime Minister Boris Johnson's pledge to take Britain out of the European Union on October 31 without a transition deal to smooth the economic shock if necessary. However, lawmakers have passed legislation that they say will force him to seek a delay from Brussels. A survey published separately on Tuesday by Britain's main auto industry group showed jobs cuts at one in three firms in the sector, which risks being a big loser from Brexit. That was up from one in eight just under a year ago. As well as worries about Brexit, Britain's economy is feeling the drag from rising US-China trade tensions which have weighed on global growth. The ONS labour market data showed a dip in the pace of pay growth which recently hit its fastest in more than 10 years. Total earnings growth, including bonuses, rose by an annual 3.8 per cent in the three months to August, slowing from 3.9 per cent in the three months to July and weaker than the median forecast of 4.0 per cent in the Reuters poll. Excluding bonuses, which smoothes out some volatility, pay growth similarly slowed slightly to 3.8 per cent, but was a touch ahead of the Reuters poll forecast of 3.7 per cent. The trend in pay growth is being watched closely by the Bank of England. Deputy Governor Dave Ramsden said in a newspaper interview published on Sunday that wage costs were "picking up quite significantly, which will drive domestic inflationary pressure." However, the BoE is waiting for more clarity on Brexit before any decision to resume its gradual and limited programme of interest rates hikes.

United Kingdom hiring falls by most in over four years as Brexit nears

GDP growth fell to 5.8% in March quatrer. Annual GDP growth has dropped to 6.8% from 7.2%. Experts said that consumption rates has slowed down in India. Watch this video to know more.

India Watch: Unemployment At A 45-Year High

Confirming unemployment rate projected in a pre-election leaked report, the government Friday said joblessness in the country was 6.1 per cent of the total labour force during 2017-18, the highest in 45 years.

The data released by the government on a day when Modi 2.0 Cabinet took charge showed 7.8 per cent of all employable urban youth being jobless, while the percentage for the rural was 5.3 per cent.

The joblessness among male on all India basis was 6.2 per cent, while it was 5.7 per cent in case of females.

Confirming unemployment rate projected in a pre-election leaked report, the government Friday said joblessness in the country was 6.1 per cent of the total labour force during 2017-18, the highest in 45 years.

Confirming unemployment rate projected in a pre-election leaked report, the government Friday said joblessness in the country was 6.1 per cent of the total labour force during 2017-18, the highest in 45 years. The data released by the government on a day when Modi 2.0 Cabinet took charge showed 7.8 per cent of all employable urban youth being jobless, while the percentage for the rural was 5.3 per cent. The joblessness among male on all India basis was 6.2 per cent, while it was 5.7 per cent in case of females.

Unemployment rate hits a 45-year high, up 6.1 per cent in 2017-18: Government data

Confirming unemployment rate projected in a pre-election leaked report, the government Friday said joblessness in the country was 6.1 per cent of total labour force during 2017-18, the highest in 45 years.

The data released by the government on a day when Modi 2.0 Cabinet took charge showed 7.8 per cent of all employable urban youth being jobless, while the percentage for the rural was 5.3 per cent.

The joblessness among male on all India basis was 6.2 per cent, while it was 5.7 per cent in case of females.&nbsp;

Confirming unemployment rate projected in a pre-election leaked report, the government Friday said joblessness in the country was 6.1 per cent of total labour force during 2017-18, the highest in 45 years.

Confirming unemployment rate projected in a pre-election leaked report, the government Friday said joblessness in the country was 6.1 per cent of total labour force during 2017-18, the highest in 45 years. The data released by the government on a day when Modi 2.0 Cabinet took charge showed 7.8 per cent of all employable urban youth being jobless, while the percentage for the rural was 5.3 per cent. The joblessness among male on all India basis was 6.2 per cent, while it was 5.7 per cent in case of females.

Unemployment rate at 6.1% in 2017-18, confirms government data

South Africa’s May 8 election will decide the future of the ANC while Unemployment, corruption remain main issue. Watch full video to know more.

South Africa election on 8 May; Unemployment, corruption main issues

The United States had another giant month of job creation in April, confirming the strength of the world's largest economy as President Donald Trump prepares to fend off challengers in next year's election.

Government data showed continued vigour in the vast services sector, with unemployment falling to a level not seen since 1969, helping allay fears of a slowdown -- although the labour force shrank.

As the second quarter began, employers scooped up workers in construction, health care, computer systems design, administrative support and other service industries, adding a total of 263,000 net new positions for the month, the data showed.

That was well above the result economists expected, and worker pay continued to climb, although at a slower pace, according to the closely-watched report from the Labor Department.

The unemployment rate fell two tenths to 3.6 per cent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force.

The jobless rate for Hispanics fell to the lowest level on record, as did a broader measure of unemployment that includes discouraged workers.

"This economy is roaring," Vice President Mike Pence told CNBC shortly after the data was released, attributing the performance squarely to Trump's economic agenda of tax cuts and slashed regulation.

Average hourly pay also rose by 3.2 per cent over April of last year, the ninth consecutive month with annual growth above three per cent, again outstripping inflation.

Compared to March, however, the increase in pay was only 0.2 per cent, shy of forecasts, but economists said this may have been due to distortions from the Easter holiday.

Manufacturing lags

Government hiring also was the strongest in eight months, with 27,000 jobs created -- likely due in part to hiring for the 2020 US census. Financial services also continued to add employees.

But hiring in the manufacturing sector was a weak spot for the third straight month, ending last year's long growth streak. Durable goods employment was flat and the auto sector continuing to shed jobs.

In the 12 months prior to February, the manufacturing sector had added an average of 22,000 jobs a month, according to the report.

The retail sector also suffered yet more job losses, with 12,000 positions cut.

Hiring in mining, which includes oil and gas, as well as utilities was little changed, the data showed.

There were other signs of weakness as well.

"If one is scouring the report for negatives, one would be the contraction in the workweek and drop in hours worked," RDQ Economics said in a client note.

"With labour force participation dropping further in April, participation is now flat on a year-over-year basis."

The three-month average for job creation has also fallen for four straight months and now sits at about 169,000 -- below the averages recorded in the same period of 2018 and 2017.

The number of people working part-time for "economic reasons" -- those who want full-time work but cannot get it -- also rose for the second month in a row in May, and at 4.7 million remains above the level from before the Great Recession.

Nevertheless, the brisk hiring should further dim hopes among investors that the Federal Reserve will feel pressure to cut interest rates in the near term.

As unemployment falls to half-century lows and workers become scarce, the continued strength of hiring has confounded predictions that companies would soon run out of people to hire, even as firms nationwide complain they are struggling to fill open positions.

And inflation has for several years defied the usual logic that low unemployment should cause wages and prices to rise.

The opinion is now divided among economists as to whether inflation later this year will at last spring to life and pressure the central bank to bump up lending rates -- the opposite of Trump's very loud recent demands for a drastic interest rate cut.

After several days in the red, Wall Street was cheered by the news, with all three major indices closing higher and the Nasdaq setting a new record high.

The United States had another giant month of job creation in April, confirming the strength of the world's largest economy as President Donald Trump prepares to fend off challengers in next year's election.

The United States had another giant month of job creation in April, confirming the strength of the world's largest economy as President Donald Trump prepares to fend off challengers in next year's election. Government data showed continued vigour in the vast services sector, with unemployment falling to a level not seen since 1969, helping allay fears of a slowdown -- although the labour force shrank. As the second quarter began, employers scooped up workers in construction, health care, computer systems design, administrative support and other service industries, adding a total of 263,000 net new positions for the month, the data showed. That was well above the result economists expected, and worker pay continued to climb, although at a slower pace, according to the closely-watched report from the Labor Department. The unemployment rate fell two tenths to 3.6 per cent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force. The jobless rate for Hispanics fell to the lowest level on record, as did a broader measure of unemployment that includes discouraged workers. "This economy is roaring," Vice President Mike Pence told CNBC shortly after the data was released, attributing the performance squarely to Trump's economic agenda of tax cuts and slashed regulation. Average hourly pay also rose by 3.2 per cent over April of last year, the ninth consecutive month with annual growth above three per cent, again outstripping inflation. Compared to March, however, the increase in pay was only 0.2 per cent, shy of forecasts, but economists said this may have been due to distortions from the Easter holiday. Manufacturing lags Government hiring also was the strongest in eight months, with 27,000 jobs created -- likely due in part to hiring for the 2020 US census. Financial services also continued to add employees. But hiring in the manufacturing sector was a weak spot for the third straight month, ending last year's long growth streak. Durable goods employment was flat and the auto sector continuing to shed jobs. In the 12 months prior to February, the manufacturing sector had added an average of 22,000 jobs a month, according to the report. The retail sector also suffered yet more job losses, with 12,000 positions cut. Hiring in mining, which includes oil and gas, as well as utilities was little changed, the data showed. There were other signs of weakness as well. "If one is scouring the report for negatives, one would be the contraction in the workweek and drop in hours worked," RDQ Economics said in a client note. "With labour force participation dropping further in April, participation is now flat on a year-over-year basis." The three-month average for job creation has also fallen for four straight months and now sits at about 169,000 -- below the averages recorded in the same period of 2018 and 2017. The number of people working part-time for "economic reasons" -- those who want full-time work but cannot get it -- also rose for the second month in a row in May, and at 4.7 million remains above the level from before the Great Recession. Nevertheless, the brisk hiring should further dim hopes among investors that the Federal Reserve will feel pressure to cut interest rates in the near term. As unemployment falls to half-century lows and workers become scarce, the continued strength of hiring has confounded predictions that companies would soon run out of people to hire, even as firms nationwide complain they are struggling to fill open positions. And inflation has for several years defied the usual logic that low unemployment should cause wages and prices to rise. The opinion is now divided among economists as to whether inflation later this year will at last spring to life and pressure the central bank to bump up lending rates -- the opposite of Trump's very loud recent demands for a drastic interest rate cut. After several days in the red, Wall Street was cheered by the news, with all three major indices closing higher and the Nasdaq setting a new record high.

US job creation surges in April as unemployment hits 49-year low

British employment has reached a record-high level, shaking off stubborn uncertainty surrounding the UK's departure from the European Union, official data showed on Tuesday.

"The level of employment in the UK increased by 179,000 to a record high of 32.72 million people in the three months to February 2019," the Office for National Statistics said in a statement.

That was the highest level since records began in 1971, according to the ONS.

The unemployment rate remained at 3.9 per cent, the lowest level since 1975.

"The UK job market remained encouragingly buoyant in February, with a combination of rising employment and falling unemployment pushing pay up at one of the fastest rates seen since the global financial crisis over 10 years ago," noted Christopher Williamson, a chief business economist at IHS Markit.

"However, forward-looking survey data suggest that demand for staff has cooled, which will likely feed through to weaker jobs growth and easing pay pressures in coming months."&nbsp;

European leaders last week agreed with British Prime Minister Theresa May to delay Brexit until October 31 at the latest, saving the continent from a chaotic no-deal departure.

The delay avoids a possible economic calamity on both sides of the Channel but does little to resolve the political morass that has seen May's control over her MPs and cabinet gradually slip.

Following Tuesday's jobs data, analysts at Capital Economics said<a href="https://www.google.com/url?q=https://www.wionews.com/world/britains-may-faces-defeat-in-parliament-over-brexit-plan-190530&amp;sa=U&amp;ved=0ahUKEwjMofuBttThAhU_73MBHXksBkwQFggLMAI&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw2tKYs9Yi56g_nUsS82WZRa"> Brexit </a>was "not applying the brakes to hiring" just yet in the UK.

"However, we suspect that this could mark the peak of employment growth as the Brexit uncertainty reached its crescendo... and the surveys turned down sharply in March," they added in a note to clients

British employment has reached a record-high level, shaking off stubborn uncertainty surrounding the UK's departure from the European Union, official data showed on Tuesday.

British employment has reached a record-high level, shaking off stubborn uncertainty surrounding the UK's departure from the European Union, official data showed on Tuesday. "The level of employment in the UK increased by 179,000 to a record high of 32.72 million people in the three months to February 2019," the Office for National Statistics said in a statement. That was the highest level since records began in 1971, according to the ONS. The unemployment rate remained at 3.9 per cent, the lowest level since 1975. "The UK job market remained encouragingly buoyant in February, with a combination of rising employment and falling unemployment pushing pay up at one of the fastest rates seen since the global financial crisis over 10 years ago," noted Christopher Williamson, a chief business economist at IHS Markit. "However, forward-looking survey data suggest that demand for staff has cooled, which will likely feed through to weaker jobs growth and easing pay pressures in coming months." European leaders last week agreed with British Prime Minister Theresa May to delay Brexit until October 31 at the latest, saving the continent from a chaotic no-deal departure. The delay avoids a possible economic calamity on both sides of the Channel but does little to resolve the political morass that has seen May's control over her MPs and cabinet gradually slip. Following Tuesday's jobs data, analysts at Capital Economics said Brexit was "not applying the brakes to hiring" just yet in the UK. "However, we suspect that this could mark the peak of employment growth as the Brexit uncertainty reached its crescendo... and the surveys turned down sharply in March," they added in a note to clients

UK employment at record high despite Brexit uncertainty: Govt data

The United States' headline unemployment rate edged down to 3.8 per cent in February, although only 20,000 new jobs were created last month in the world's largest economy, the Labor Department reported Friday.

Those figures were contained in the Bureau of Labor Statistics' "The Employment Situation" report for February.

The US economy remains close to full employment, but the expansion of non-farm payrolls was far below the expectations of economists, who had been forecasting 175,000 new jobs.

Despite February's new jobs figure, which was the lowest in 17 months, an average of 200,000 jobs per month have been created over the past year.

The construction sector was hit the hardest last month, suffering a net loss of 31,000 jobs.

Average hourly earnings for all non-farm employees rose in February to $27.66, up from $27.55 in January. That increase followed a gain of just two cents between December 2018 and the first month of this year.

Wages were up 3.4 per cent from February 2018.

The labour force participation rate (the share of the population 16 years and older either working or seeking work) remained unchanged from the previous month at 63.2 per cent.

US employment has now risen for 100 consecutive months, the longest jobs-expansion streak on record.

But the weak payroll growth in February came as a surprise considering that an upwardly revised 311,000 new jobs were created in January despite the partial federal government shutdown, according to the Labor Department's most recent figures.

After the report was published, President Donald Trump hailed the strides made in female employment in the US.

"Women's unemployment rate is down to 3.6 per cent - was 7.9 per cent in January 2011. Things are looking good!" the president tweeted on International Women's Day, although the figure he was referring to is really 3.8 percent.

In statements to reporters, Trump said the most important aspect of the February jobs report is wage growth.

Labor Secretary Alexander Acosta, for his part, also highlighted the rise in hourly earnings.

"At 3.4 per cent year-over-year, wage gains hit their highest mark since April 2009. The year-over-year average hourly earnings growth surpassing 3.0 per cent for the seventh straight month is good news for America's workers," he added.

Acosta noted that despite the low increase in payrolls last month there was still an average jobs gain of 186,000 over the past three months.

He also said skills development was crucial to boost hiring.

"This month's jobs report highlights the importance of focusing on workforce investment that builds the skills needed to fill the record amount of open jobs," Acosta said.

The United States' headline unemployment rate edged down to 3.8 per cent in February, although only 20,000 new jobs were created last month in the world's largest economy, the Labor Department reported Friday.

The United States' headline unemployment rate edged down to 3.8 per cent in February, although only 20,000 new jobs were created last month in the world's largest economy, the Labor Department reported Friday. Those figures were contained in the Bureau of Labor Statistics' "The Employment Situation" report for February. The US economy remains close to full employment, but the expansion of non-farm payrolls was far below the expectations of economists, who had been forecasting 175,000 new jobs. Despite February's new jobs figure, which was the lowest in 17 months, an average of 200,000 jobs per month have been created over the past year. The construction sector was hit the hardest last month, suffering a net loss of 31,000 jobs. Average hourly earnings for all non-farm employees rose in February to $27.66, up from $27.55 in January. That increase followed a gain of just two cents between December 2018 and the first month of this year. Wages were up 3.4 per cent from February 2018. The labour force participation rate (the share of the population 16 years and older either working or seeking work) remained unchanged from the previous month at 63.2 per cent. US employment has now risen for 100 consecutive months, the longest jobs-expansion streak on record. But the weak payroll growth in February came as a surprise considering that an upwardly revised 311,000 new jobs were created in January despite the partial federal government shutdown, according to the Labor Department's most recent figures. After the report was published, President Donald Trump hailed the strides made in female employment in the US. "Women's unemployment rate is down to 3.6 per cent - was 7.9 per cent in January 2011. Things are looking good!" the president tweeted on International Women's Day, although the figure he was referring to is really 3.8 percent. In statements to reporters, Trump said the most important aspect of the February jobs report is wage growth. Labor Secretary Alexander Acosta, for his part, also highlighted the rise in hourly earnings. "At 3.4 per cent year-over-year, wage gains hit their highest mark since April 2009. The year-over-year average hourly earnings growth surpassing 3.0 per cent for the seventh straight month is good news for America's workers," he added. Acosta noted that despite the low increase in payrolls last month there was still an average jobs gain of 186,000 over the past three months. He also said skills development was crucial to boost hiring. "This month's jobs report highlights the importance of focusing on workforce investment that builds the skills needed to fill the record amount of open jobs," Acosta said.

US unemployment rate falls to 3.8% in February; job growth slows sharply

The global <a href="http://www.wionews.com/world/unemployment-major-challenge-facing-india-imf-127132">unemployment</a> rate inched down last year, the UN said Wednesday, warning though that jobs often failed to guarantee decent living, with some 700 million workers wallowing in poverty.&nbsp;

Unemployment around the world fell last year to 5.0 percent — from 5.1 percent in 2017 — for the first time dropping to the level seen before the global financial crisis hit in 2008, the International Labour Organisation said.

But in its flagship "World Employment and Social Outlook" trends report, the ILO also raised serious red flags about the health of the planet's job market.&nbsp;

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Deborah Greenfield, ILO's deputy director-general, told journalists in Geneva that the decline in global unemployment "is projected to stall", amid "uncertainty on many fronts," and a "deteriorating economic outlook".

The UN agency said it expected the jobless rate to remain at roughly the same level this year and in 2020, although the number of unemployed people should swell by two million to a total of 174 million next year as a result of the expanding labour force.

In particular, the report highlighted the hundreds of millions of people who remain poor despite holding one or more jobs.

In fact, it found that a majority of the 3.3 billion people employed around the globe last year suffered a "lack of material well-being, economic security, equal opportunities or scope for human development."

"Being in employment does not always guarantee a decent living," ILO research director Damian Grimshaw said in a statement, pointing out that "a full 700 million people are living in extreme or moderate poverty despite having employment."

The report found that a full 61 percent of all workers worldwide, or two billion people, are in so-called informal employment, with little to no social and contractual protections.

Greenfield cautioned that some new and emerging business models, such as using new technologies to create temporary work through web-based platforms for things like ride-sharing services, could expand that number if not regulated properly.

"Without the right policy measures it could easily add to the informal labour force," she said.

Among other issues highlighted in the report was the lack of progress in closing the gender gap in labour force participation, especially in the Arab states, North Africa and southern Asia.

ILO found that just 48 percent of women are in the workforce, compared to 75 percent of men, meaning that around three in five employed people last year were men.

In the Arab states, for instance, the report found that the unemployment rate for men stood at 15.6 percent -- three times that for men.

The global unemployment rate inched down last year, the UN said Wednesday, warning though that jobs often failed to guarantee decent living, with some 700 million workers wallowing in poverty.

The global unemployment rate inched down last year, the UN said Wednesday, warning though that jobs often failed to guarantee decent living, with some 700 million workers wallowing in poverty. Unemployment around the world fell last year to 5.0 percent — from 5.1 percent in 2017 — for the first time dropping to the level seen before the global financial crisis hit in 2008, the International Labour Organisation said. But in its flagship "World Employment and Social Outlook" trends report, the ILO also raised serious red flags about the health of the planet's job market. The ILO also raised, in its flagship 'World Employment and Social Outlook' trends report, serious red flags about the health of the planet's job market × Deborah Greenfield, ILO's deputy director-general, told journalists in Geneva that the decline in global unemployment "is projected to stall", amid "uncertainty on many fronts," and a "deteriorating economic outlook". The UN agency said it expected the jobless rate to remain at roughly the same level this year and in 2020, although the number of unemployed people should swell by two million to a total of 174 million next year as a result of the expanding labour force. In particular, the report highlighted the hundreds of millions of people who remain poor despite holding one or more jobs. In fact, it found that a majority of the 3.3 billion people employed around the globe last year suffered a "lack of material well-being, economic security, equal opportunities or scope for human development." "Being in employment does not always guarantee a decent living," ILO research director Damian Grimshaw said in a statement, pointing out that "a full 700 million people are living in extreme or moderate poverty despite having employment." The report found that a full 61 percent of all workers worldwide, or two billion people, are in so-called informal employment, with little to no social and contractual protections. Greenfield cautioned that some new and emerging business models, such as using new technologies to create temporary work through web-based platforms for things like ride-sharing services, could expand that number if not regulated properly. "Without the right policy measures it could easily add to the informal labour force," she said. Among other issues highlighted in the report was the lack of progress in closing the gender gap in labour force participation, especially in the Arab states, North Africa and southern Asia. ILO found that just 48 percent of women are in the workforce, compared to 75 percent of men, meaning that around three in five employed people last year were men. In the Arab states, for instance, the report found that the unemployment rate for men stood at 15.6 percent -- three times that for men.

Global unemployment down, but too many working poor: UN

Clearing the air about the news report that stated <a href="http://www.wionews.com/india-news/fuhrer-mussolini-rahul-gandhi-bjp-spar-over-jobs-report-194112">India had recorded a 45-year high unemployment rate</a>, NITI Aayog vice chairman Rajiv Kumar said on Thursday that the government has not yet released any official data on unemployment as the data was still in process.

"Government did not release the data (on jobs) as it is still being processed. When the data is ready we will release it", Rajiv Kumar said.

He further said it was not correct to rely upon the data (released today).

"Data collection method is different now, we are using a computer-assisted personal interviewee in the new survey. It is not right to compare the two data sets, this data is not verified. It is not correct to use this report as final, " he added.

A media report on Thursday showed the assessment by the National Sample Survey Office (NSSO) conducted between July 2017-June 2018. According to the report the unemployment rate stood at 6.1 per cent, the highest since 1972-73.&nbsp;

The report further said that joblessness stood at 7.8 per cent in urban areas compared with 5.3 parts in the countryside.

The report published in a newspaper on Thursday said that the official survey that has been withheld by the government shows India's unemployment rate rose to a 45-year high during 2017-2018.

Clearing the air about the news report that stated India had recorded a 45-year high unemployment rate, NITI Aayog vice chairman Rajiv Kumar said on Thursday that the government has not yet released any official data on unemployment as the data was still in process.

Clearing the air about the news report that stated India had recorded a 45-year high unemployment rate, NITI Aayog vice chairman Rajiv Kumar said on Thursday that the government has not yet released any official data on unemployment as the data was still in process. "Government did not release the data (on jobs) as it is still being processed. When the data is ready we will release it", Rajiv Kumar said. He further said it was not correct to rely upon the data (released today). "Data collection method is different now, we are using a computer-assisted personal interviewee in the new survey. It is not right to compare the two data sets, this data is not verified. It is not correct to use this report as final, " he added. A media report on Thursday showed the assessment by the National Sample Survey Office (NSSO) conducted between July 2017-June 2018. According to the report the unemployment rate stood at 6.1 per cent, the highest since 1972-73. The report further said that joblessness stood at 7.8 per cent in urban areas compared with 5.3 parts in the countryside. The report published in a newspaper on Thursday said that the official survey that has been withheld by the government shows India's unemployment rate rose to a 45-year high during 2017-2018.

Government has not yet released any official data on unemployment: NITI Aayog on job report

The US economic engine brushed past last month's Hurricane Michael to continue its robust job creation while giving workers a fat pay bump, the government reported Friday.

In a welcome development for Republicans ahead of next week's bitter midterm vote, American employers added 250,000 net new positions in October, handily overshooting forecasts, while salaries rose at the fastest rate since 2009, the Labor Department said.

Unemployment held steady at 3.7 per cent, a 48-year low.

The result was a surprise as some economists had expected the hurricane that made landfall on the Florida panhandle in the middle of the employment survey week to depress reports of hiring and worker pay.

Instead, officials said the storm, which disrupted business and life for millions, produced "no discernable effect" on the estimates.

Companies kept right on hiring in healthcare, manufacturing, construction, transportation and warehousing.

But perhaps more significant, average hourly earnings, a closely watched measure of worker pay, rose 0.2 per cent from September, putting wages 3.1 per cent above the year-ago level -- the fastest gain since April 2009.

Sluggish worker pay gains despite the healthy jobs market had baffled economists, and the gain now is well above the 2.3 per cent pace of consumer inflation.

The transportation equipment sector added 21,000 workers, within which the key auto industry accounted for 6,800 positions.

In another dose of good news, the American workforce grew by 711,000 people, lifting the labour force participation rate 0.2 percentage points to 62.9 per cent, after holding stubbornly stable through the economic recovery.

The share of the population in the workforce also rose 0.2 to 60.6 per cent.

The Federal Reserve is not expected to raise interest rates when it meets to consider monetary policy next week, but the latest jobs report likely solidifies the case for the rate hike expected in December.

President Donald Trump has expressed outrage at the Fed's current tightening cycle, after three hikes this year.

But with unemployment flirting with historic lows and the economy juiced by tax cuts, stimulus and steady job creation, economists say policymakers will feel they have little choice but to continue raising rates to stave off inflation and prevent the economy from overheating.

The US economic engine brushed past last month's Hurricane Michael to continue its robust job creation while giving workers a fat pay bump, the government reported Friday.

The US economic engine brushed past last month's Hurricane Michael to continue its robust job creation while giving workers a fat pay bump, the government reported Friday. In a welcome development for Republicans ahead of next week's bitter midterm vote, American employers added 250,000 net new positions in October, handily overshooting forecasts, while salaries rose at the fastest rate since 2009, the Labor Department said. Unemployment held steady at 3.7 per cent, a 48-year low. The result was a surprise as some economists had expected the hurricane that made landfall on the Florida panhandle in the middle of the employment survey week to depress reports of hiring and worker pay. Instead, officials said the storm, which disrupted business and life for millions, produced "no discernable effect" on the estimates. Companies kept right on hiring in healthcare, manufacturing, construction, transportation and warehousing. But perhaps more significant, average hourly earnings, a closely watched measure of worker pay, rose 0.2 per cent from September, putting wages 3.1 per cent above the year-ago level -- the fastest gain since April 2009. Sluggish worker pay gains despite the healthy jobs market had baffled economists, and the gain now is well above the 2.3 per cent pace of consumer inflation. The transportation equipment sector added 21,000 workers, within which the key auto industry accounted for 6,800 positions. In another dose of good news, the American workforce grew by 711,000 people, lifting the labour force participation rate 0.2 percentage points to 62.9 per cent, after holding stubbornly stable through the economic recovery. The share of the population in the workforce also rose 0.2 to 60.6 per cent. The Federal Reserve is not expected to raise interest rates when it meets to consider monetary policy next week, but the latest jobs report likely solidifies the case for the rate hike expected in December. President Donald Trump has expressed outrage at the Fed's current tightening cycle, after three hikes this year. But with unemployment flirting with historic lows and the economy juiced by tax cuts, stimulus and steady job creation, economists say policymakers will feel they have little choice but to continue raising rates to stave off inflation and prevent the economy from overheating.

US adds 250,000 jobs in October; unemployment rate steady

The US jobless rate tumbled in September to its lowest level since December 1969, even as job creation slowed, likely due in part to Hurricane Florence, the government reported Friday.

A month ahead of hard-fought congressional elections, the result was sure to delight US President Donald Trump, who has eagerly taken credit for America's extended run of economic expansion even as his Republican party faces a possible rebuke from disenchanted voters.

Unemployment fell to a 48-year-low of 3.7 per cent last month from 3.9 per cent, an unusually large drop, according to the Labor Department's closely-watched monthly jobs report.

But despite the lower jobless rate, non-farm employers added just 134,000 net new positions, far weaker than analysts expected.

Hurricane Florence, the storm that made landfall along the mid-Atlantic US coast on September 14, caused widespread disruption for homes and employers but it was not possible to determine the extent to which this might have depressed the September jobs numbers, officials said.

Economists had expected job creation to slow but only to 184,000, even with the hurricane effect, from the 270,000 net new positions created in August. Job gains in July and August were revised up a combined 87,000 from the original reports.

Employees temporarily left unable to work during natural disasters can be left off the government's monthly jobs survey, especially part time workers who receive no pay during the week of the survey, meaning figures can rebound in the month after a storm.

"We're humming, we're just humming," White House economic adviser Larry Kudlow told reporters. "The economy's running full speed ahead."

And he said he expects the economy can maintain the "very good pace" of job creation.

The modest job gains came after private payrolls firm ADP said hiring surged 230,000 in the month, but the two reports often diverge since they calculate employment differently.

S&amp;P Global economist Satyam Panday noted that the three-month average for job gains was 190,000, slightly below the rate of 201,000 over the last year.

But this is "still impressive given the mature stage of the current expansion," he said in an analytical note.

Echoes of the Nixon era

Meanwhile, the labor force participation rate held steady at 62.7 per cent, while the number of unemployed people fell by 270,000 to six million, with the largest drop among adult women.&nbsp;

Hourly pay edged up 0.3 per cent for the month, and is 2.8 per cent higher than the same month last year, a notch above inflation.

Job gains were noted in healthcare, up 26,000, transportation and warehousing, up 24,000, and construction, up 23,000.

But the banner result from August's jobs numbers was surely the record low jobless rate, which was driven lower by job gains among adult women.

But with unemployment at levels not seen since Richard Nixon was in the White House, the September report also sure strengthened the case for the Federal Reserve to continue raising interest rates.

Markets widely expect the central bank to raise rates again in December but some analysts say markets may not have taken the Fed's expectations for next year -- another three increases -- into account, potentially leaving them in for a rude shock.

Wall Street closed down sharply following the news, extending losses from Thursday's selloff due to a sudden jump in bond yields.

The last time the US jobless rate was so low preceded more than a decade of economic pain tied to rising price pressures and efforts to rein them in. But wage increases so far have been modest, something that puzzles economists but allows the Fed to move gradually.

And many analysts see the unemployment rate continuing to decline this year, ramping up pressure on wages and prices.

"No-one at the Fed thinks unemployment near three per cent is sustainable," Ian Shepherdson of Pantheon Macroeconomics said in a client note.

As a result, the Fed is all but guaranteed to stick to its plan of raising rates four times before the end of next year, he added.

The US jobless rate tumbled in September to its lowest level since December 1969, even as job creation slowed, likely due in part to Hurricane Florence, the government reported Friday.

The US jobless rate tumbled in September to its lowest level since December 1969, even as job creation slowed, likely due in part to Hurricane Florence, the government reported Friday. A month ahead of hard-fought congressional elections, the result was sure to delight US President Donald Trump, who has eagerly taken credit for America's extended run of economic expansion even as his Republican party faces a possible rebuke from disenchanted voters. Unemployment fell to a 48-year-low of 3.7 per cent last month from 3.9 per cent, an unusually large drop, according to the Labor Department's closely-watched monthly jobs report. But despite the lower jobless rate, non-farm employers added just 134,000 net new positions, far weaker than analysts expected. Hurricane Florence, the storm that made landfall along the mid-Atlantic US coast on September 14, caused widespread disruption for homes and employers but it was not possible to determine the extent to which this might have depressed the September jobs numbers, officials said. Economists had expected job creation to slow but only to 184,000, even with the hurricane effect, from the 270,000 net new positions created in August. Job gains in July and August were revised up a combined 87,000 from the original reports. Employees temporarily left unable to work during natural disasters can be left off the government's monthly jobs survey, especially part time workers who receive no pay during the week of the survey, meaning figures can rebound in the month after a storm. "We're humming, we're just humming," White House economic adviser Larry Kudlow told reporters. "The economy's running full speed ahead." And he said he expects the economy can maintain the "very good pace" of job creation. The modest job gains came after private payrolls firm ADP said hiring surged 230,000 in the month, but the two reports often diverge since they calculate employment differently. S&P Global economist Satyam Panday noted that the three-month average for job gains was 190,000, slightly below the rate of 201,000 over the last year. But this is "still impressive given the mature stage of the current expansion," he said in an analytical note. Echoes of the Nixon era Meanwhile, the labor force participation rate held steady at 62.7 per cent, while the number of unemployed people fell by 270,000 to six million, with the largest drop among adult women. Hourly pay edged up 0.3 per cent for the month, and is 2.8 per cent higher than the same month last year, a notch above inflation. Job gains were noted in healthcare, up 26,000, transportation and warehousing, up 24,000, and construction, up 23,000. But the banner result from August's jobs numbers was surely the record low jobless rate, which was driven lower by job gains among adult women. But with unemployment at levels not seen since Richard Nixon was in the White House, the September report also sure strengthened the case for the Federal Reserve to continue raising interest rates. Markets widely expect the central bank to raise rates again in December but some analysts say markets may not have taken the Fed's expectations for next year -- another three increases -- into account, potentially leaving them in for a rude shock. Wall Street closed down sharply following the news, extending losses from Thursday's selloff due to a sudden jump in bond yields. The last time the US jobless rate was so low preceded more than a decade of economic pain tied to rising price pressures and efforts to rein them in. But wage increases so far have been modest, something that puzzles economists but allows the Fed to move gradually. And many analysts see the unemployment rate continuing to decline this year, ramping up pressure on wages and prices. "No-one at the Fed thinks unemployment near three per cent is sustainable," Ian Shepherdson of Pantheon Macroeconomics said in a client note. As a result, the Fed is all but guaranteed to stick to its plan of raising rates four times before the end of next year, he added.

US unemployment falls to 48-year low in September

The US unemployment rate fell to its lowest level&nbsp;in 18 years&nbsp;in May, the Labor Department reported&nbsp;Friday, showing the world's biggest economy remains robust even as President Donald Trump's aggressive trade policies have stoked fears of an all-out trade war.

The jobless rate fell to 3.8 per cent from 3.9 per cent in the prior month, the lowest level since April 2000.

The last time the rate was lower than 3.8 per cent was December 1969.

With a shortage of workers reported throughout the country and across many industries and skill levels, the latest data confirmed wages are rising.

The economy added 223,000 non-farm jobs last month, stronger than the consensus forecast of economists, and better than the increase of 159,000 in April.

And the jobless rate for African American workers dropped sharply in the month to 5.9 per cent from 6.6 per cent, the lowest since the government began keeping records in 1972.

President Donald Trump has been touting that figure as a major accomplishment of his economic policies.

"We have reached yet one more historic milestone with 3.8 per cent unemployment just announced, and another all-time record low African-American unemployment," Trump said at an event shortly after the data were released.

At an event later&nbsp;Friday&nbsp;he continued to tout the strong results.

"We have such a great country right now," he said. "We have some of the best economic numbers we've ever had as a nation and that goes a long way. And we're building something very special."

But many economists and businesses have warned that jobs and economic growth could be victims of Trump's confrontational trade policies which includes steep tariffs on steel and aluminium that have hit key alli

Trump broke with protocol by tweeting about the report an hour before release time, hinting the figures would be positive.

"Looking forward to seeing the employment numbers at&nbsp;8:30&nbsp;this morning," he said on Twitter.

The data are kept strictly confidential and subject to tight security to prevent early release since investors worldwide are waiting to trade on the information.&nbsp;

The report is given to the White House a day in advance, although officials never hint at the contents.

A government rule prevents officials from commenting on sensitive data reports until one hour after release, something Trump administration officials have ignored on various occasions.

Markets did not appear to react to the tweet ahead of release time but were delighted afterwards.&nbsp;

US stocks surged after the opening bell, and mostly continued upward, with the tech-rich Nasdaq closing up 1.5 per cent, while the Dow gained 0.9 per cent.

With robust hiring continuing -- well beyond the monthly average of 179,000 for the past three months -- employers have been reporting the need to increase salaries and benefits to attract workers and keep them from being poached by competitors.

The report shows average hourly earnings rose 0.3 per cent last month to $26.92, which is 2.7 per cent higher than a year ago.

And the pace of hiring is shrinking the pool of available workers -- defined as those working or actively looking for work -- and that was the main driver behind the lower unemployment rate.&nbsp;

With wage gains finally above the Federal Reserve's two per cent inflation target, the central bank will be watching carefully to see if rising salaries translate into accelerating price increases.

However, the Fed signalled clearly that it is willing to tolerate inflation slightly above two per cent for a short period.

The central bank is widely expected to raise the benchmark lending rate at its meeting later in June, the second increase of three or four expected this year.

Hiring was strong across multiple sectors, although there was a slowdown in manufacturing -- contrary to Trump's repeated claims that the industry is adding workers due to last year's tax cuts and his trade policies, which include steep tariffs on aluminium and steel.

The manufacturing sector added 18,000 workers, the least since September 2017, retailers added 31,000, while health care rose 29,000 and construction 25,000.

Ben Herzon of IHS Markit said the labour market "is tightening rapidly" -- meaning the jobless rate is likely to fall further.

"Nearly all aspects of this report were positive and consistent with the solid growth of wage-and-salary income in the second quarter," Herzon said.

The jobless rate fell to 3.8 per cent from 3.9 per cent in the prior month, the lowest level since April 2000

The US unemployment rate fell to its lowest level in 18 years in May, the Labor Department reported Friday, showing the world's biggest economy remains robust even as President Donald Trump's aggressive trade policies have stoked fears of an all-out trade war. The jobless rate fell to 3.8 per cent from 3.9 per cent in the prior month, the lowest level since April 2000. The last time the rate was lower than 3.8 per cent was December 1969. With a shortage of workers reported throughout the country and across many industries and skill levels, the latest data confirmed wages are rising. The economy added 223,000 non-farm jobs last month, stronger than the consensus forecast of economists, and better than the increase of 159,000 in April. And the jobless rate for African American workers dropped sharply in the month to 5.9 per cent from 6.6 per cent, the lowest since the government began keeping records in 1972. President Donald Trump has been touting that figure as a major accomplishment of his economic policies. "We have reached yet one more historic milestone with 3.8 per cent unemployment just announced, and another all-time record low African-American unemployment," Trump said at an event shortly after the data were released. At an event later Friday he continued to tout the strong results. "We have such a great country right now," he said. "We have some of the best economic numbers we've ever had as a nation and that goes a long way. And we're building something very special." But many economists and businesses have warned that jobs and economic growth could be victims of Trump's confrontational trade policies which includes steep tariffs on steel and aluminium that have hit key alli Trump broke with protocol by tweeting about the report an hour before release time, hinting the figures would be positive. "Looking forward to seeing the employment numbers at 8:30 this morning," he said on Twitter. The data are kept strictly confidential and subject to tight security to prevent early release since investors worldwide are waiting to trade on the information. The report is given to the White House a day in advance, although officials never hint at the contents. A government rule prevents officials from commenting on sensitive data reports until one hour after release, something Trump administration officials have ignored on various occasions. Markets did not appear to react to the tweet ahead of release time but were delighted afterwards. US stocks surged after the opening bell, and mostly continued upward, with the tech-rich Nasdaq closing up 1.5 per cent, while the Dow gained 0.9 per cent. With robust hiring continuing -- well beyond the monthly average of 179,000 for the past three months -- employers have been reporting the need to increase salaries and benefits to attract workers and keep them from being poached by competitors. The report shows average hourly earnings rose 0.3 per cent last month to $26.92, which is 2.7 per cent higher than a year ago. And the pace of hiring is shrinking the pool of available workers -- defined as those working or actively looking for work -- and that was the main driver behind the lower unemployment rate. With wage gains finally above the Federal Reserve's two per cent inflation target, the central bank will be watching carefully to see if rising salaries translate into accelerating price increases. However, the Fed signalled clearly that it is willing to tolerate inflation slightly above two per cent for a short period. The central bank is widely expected to raise the benchmark lending rate at its meeting later in June, the second increase of three or four expected this year. Hiring was strong across multiple sectors, although there was a slowdown in manufacturing -- contrary to Trump's repeated claims that the industry is adding workers due to last year's tax cuts and his trade policies, which include steep tariffs on aluminium and steel. The manufacturing sector added 18,000 workers, the least since September 2017, retailers added 31,000, while health care rose 29,000 and construction 25,000. Ben Herzon of IHS Markit said the labour market "is tightening rapidly" -- meaning the jobless rate is likely to fall further. "Nearly all aspects of this report were positive and consistent with the solid growth of wage-and-salary income in the second quarter," Herzon said.

US unemployment falls to 3.8% in May, lowest in 18 years

The number of Americans filing for unemployment benefits fell to a near 45-year low last week, pointing to strong job growth in February, which should continue to underpin the economy.

Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 222,000 for the week ended February 17, the Labor Department said on Thursday. Claims fell to 216,000 in mid-January, which was the lowest level since January 1973.

Claims for six states, including California, were estimated because of Monday&#39;s Presidents Day holiday. While that probably distorted last week&#39;s data, the underlying trend in claims was consistent with a robust labor market.

&quot;Firms are extraordinarily unwilling to part company with workers reflecting, in all likelihood, the difficulty of replacing them,&quot; said John Ryding, chief economist at RDQ Economics in New York.&nbsp;

Economists polled by Reuters had forecast claims unchanged at 230,000 in the latest week. It was the 155th straight week that claims remained below the 300,000 threshold, which is associated with a strong labor market. That is the longest such stretch since 1970, when the labor market was much smaller.

The labor market is near full employment, with the jobless rate at a 17-year low of 4.1 percent. Tightening labor market conditions are starting to push up wage growth, which could help to lift inflation toward the Federal Reserve 2 percent target.

Minutes of the US&nbsp;central bank&#39;s Jan. 30-31 policy meeting published on Wednesday showed policymakers upbeat in their assessment of the economy and a number &quot;judged that the continued tightening in labor markets was likely to translate into faster wage increases at some point.&quot;&nbsp;

US&nbsp;financial markets were little moved by the claims data.

The Labor Department said claims for California, Hawaii, Maine, Virginia, West Virginia and Wyoming were estimated. It also said claims-taking procedures in Puerto Rico and the Virgin Islands had still not returned to normal, months after the territories were slammed by Hurricanes Irma and Maria.&nbsp;

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,250 to 226,000 last week.

The claims data covered the survey period for the nonfarm payrolls component of February&#39;s employment report. The four-week average of claims dropped 17,500 between the January and February survey weeks, suggesting solid job growth this month.&nbsp;

Payrolls increased by 200,000 jobs in January. Strong employment gains in February would seal the case for an interest rate increase next month. The Fed has forecast three rate increases this year. Most economists, however, expect four rate hikes in the wake of strong inflation readings in January.

Thursday&#39;s claims report also showed the number of people receiving benefits after an initial week of aid declined 73,000 to 1.88 million in the week ended February 10. The four-week moving average of the so-called continuing claims fell 16,250 to 1.93 million. 
&nbsp;

Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 222,000 for the week ended February 17

The number of Americans filing for unemployment benefits fell to a near 45-year low last week, pointing to strong job growth in February, which should continue to underpin the economy. Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 222,000 for the week ended February 17, the Labor Department said on Thursday. Claims fell to 216,000 in mid-January, which was the lowest level since January 1973. Claims for six states, including California, were estimated because of Monday's Presidents Day holiday. While that probably distorted last week's data, the underlying trend in claims was consistent with a robust labor market. "Firms are extraordinarily unwilling to part company with workers reflecting, in all likelihood, the difficulty of replacing them," said John Ryding, chief economist at RDQ Economics in New York. Economists polled by Reuters had forecast claims unchanged at 230,000 in the latest week. It was the 155th straight week that claims remained below the 300,000 threshold, which is associated with a strong labor market. That is the longest such stretch since 1970, when the labor market was much smaller. The labor market is near full employment, with the jobless rate at a 17-year low of 4.1 percent. Tightening labor market conditions are starting to push up wage growth, which could help to lift inflation toward the Federal Reserve 2 percent target. Minutes of the US central bank's Jan. 30-31 policy meeting published on Wednesday showed policymakers upbeat in their assessment of the economy and a number "judged that the continued tightening in labor markets was likely to translate into faster wage increases at some point." US financial markets were little moved by the claims data. The Labor Department said claims for California, Hawaii, Maine, Virginia, West Virginia and Wyoming were estimated. It also said claims-taking procedures in Puerto Rico and the Virgin Islands had still not returned to normal, months after the territories were slammed by Hurricanes Irma and Maria. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,250 to 226,000 last week. The claims data covered the survey period for the nonfarm payrolls component of February's employment report. The four-week average of claims dropped 17,500 between the January and February survey weeks, suggesting solid job growth this month. Payrolls increased by 200,000 jobs in January. Strong employment gains in February would seal the case for an interest rate increase next month. The Fed has forecast three rate increases this year. Most economists, however, expect four rate hikes in the wake of strong inflation readings in January. Thursday's claims report also showed the number of people receiving benefits after an initial week of aid declined 73,000 to 1.88 million in the week ended February 10. The four-week moving average of the so-called continuing claims fell 16,250 to 1.93 million.

US jobless claims drop to near 45-year low

US job creation accelerated in January, as labor markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported Friday.

The world&#39;s largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported.

The result beat forecasts, which predicted an increase of 180,000, and helped offset December&#39;s disappointing result.

Meanwhile, the unemployment rate remained at 4.1 percent for the fourth month in a row.

Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12-month increase in more than nine years. &nbsp;

That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do.

Hourly wages rose 0.3 percent from the prior month to $26.74, putting worker pay up 2.9 percent compared to January of last year, the largest 12-month gain since June 2009.

Over the same period, the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices.

The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil.

Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs.

The ranks of health care workers swelled for the month as well, adding 21,000 new positions.

Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000.

With the 4.1 percent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million.

However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 percent in January last year.

Trump took office a year ago, pledging to create 25 million new jobs over a decade or just over 200,000 per month.

However, Labor Department figures released Friday show the economy added 2.17 million jobs in 2017, fewer than 2016 when there were 2.34 million new jobs.

The world's largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported

US job creation accelerated in January, as labor markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported Friday. The world's largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported. The result beat forecasts, which predicted an increase of 180,000, and helped offset December's disappointing result. Meanwhile, the unemployment rate remained at 4.1 percent for the fourth month in a row. Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12-month increase in more than nine years. That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do. Hourly wages rose 0.3 percent from the prior month to $26.74, putting worker pay up 2.9 percent compared to January of last year, the largest 12-month gain since June 2009. Over the same period, the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices. The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil. Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs. The ranks of health care workers swelled for the month as well, adding 21,000 new positions. Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000. With the 4.1 percent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million. However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 percent in January last year. Trump took office a year ago, pledging to create 25 million new jobs over a decade or just over 200,000 per month. However, Labor Department figures released Friday show the economy added 2.17 million jobs in 2017, fewer than 2016 when there were 2.34 million new jobs.

US adds 200,000 new jobs in January

Indian software trade body Nasscom dismissed widespread media reports of mass layoffs in the country&#39;s hugely important information technology industry but warned that the sector must reinvent itself.

IT outsourcing has long been one of India&#39;s flagship industries but recent news reports have claimed that major companies, including Tech Mahindra and Wipro, are making thousands redundant due to increased automation.

&quot;The numbers being reported across different sources are incorrect and are not in line with the actual employment progression,&quot; the National Association of Software and Services Companies said in a press release on Thursday.

&quot;The industry continues to be a net hirer with talent acquisition continuing across sectors and remains one of the largest employers of the nation,&quot; it added in the statement following a conference in New Delhi.

Several Indian newspapers, including respected business dailies like The Economic Times and Mint, have reported major IT firms are in the process of gradually laying off thousands of staff, although the companies themselves are yet to comment on numbers.

Nasscom claimed that 1,70,000 new jobs had been created in the recently ended financial year and predicted that up to three million new positions would be added by 2025, but conceded that there was a slowdown in the rate of hiring.

It also called for employees to learn new skills to help companies&#39; keep up with demands for newer and more innovative technologies.

&quot;Going forward the focus for companies will be on skills and proficiency levels rather than scale, hence it is becoming imperative for employees (both current and potential) to skill themselves in domain specific requirements,&quot; it said.

Nasscom says that the IT outsourcing industry employs nearly four million Indians and saw revenues of around $154 billion.

India has been popularly termed as the &quot;back office&quot; to the world as companies, largely in developed nations, subcontracted work to Indian firms, taking advantage of the country&#39;s skilled English-speaking workforce.&nbsp;

But there are concerns it is losing its sheen as companies move towards automation and seek newer technologies while there are also fears over US President Donald Trump&#39;s curbs on H-1B visas, which allow aspiring Indian engineers to work in America.

(PTI)

Nasscom claimed that 1,70,000 new jobs had been created in the recently ended financial year and predicted that up to three million new positions would be added by 2025

Indian software trade body Nasscom dismissed widespread media reports of mass layoffs in the country's hugely important information technology industry but warned that the sector must reinvent itself. IT outsourcing has long been one of India's flagship industries but recent news reports have claimed that major companies, including Tech Mahindra and Wipro, are making thousands redundant due to increased automation. "The numbers being reported across different sources are incorrect and are not in line with the actual employment progression," the National Association of Software and Services Companies said in a press release on Thursday. "The industry continues to be a net hirer with talent acquisition continuing across sectors and remains one of the largest employers of the nation," it added in the statement following a conference in New Delhi. Several Indian newspapers, including respected business dailies like The Economic Times and Mint, have reported major IT firms are in the process of gradually laying off thousands of staff, although the companies themselves are yet to comment on numbers. Nasscom claimed that 1,70,000 new jobs had been created in the recently ended financial year and predicted that up to three million new positions would be added by 2025, but conceded that there was a slowdown in the rate of hiring. It also called for employees to learn new skills to help companies' keep up with demands for newer and more innovative technologies. "Going forward the focus for companies will be on skills and proficiency levels rather than scale, hence it is becoming imperative for employees (both current and potential) to skill themselves in domain specific requirements," it said. Nasscom says that the IT outsourcing industry employs nearly four million Indians and saw revenues of around $154 billion. India has been popularly termed as the "back office" to the world as companies, largely in developed nations, subcontracted work to Indian firms, taking advantage of the country's skilled English-speaking workforce. But there are concerns it is losing its sheen as companies move towards automation and seek newer technologies while there are also fears over US President Donald Trump's curbs on H-1B visas, which allow aspiring Indian engineers to work in America. (PTI)

India's IT industry body Nasscom dismisses mass layoff reports

The Saudi Arabian government has <a href="http://www.khaleejtimes.com/region/saudi-arabia/saudi-to-remove-all-expats-from-govt-departments-ministries">announced plans</a> to remove all expatriates from the public sector over the next three years. This is part of the Saudization 2020 plan to ensure more jobs for locals in the kingdom.

According to estimates from the International Labor Organization, 5.5% of the labour force in Saudi Arabia was unemployed in 2016. Here&#39;s a chart showing unemployment rates for the rest of the countries in the Persian Gulf:

&nbsp;

<div id="highcharts-eregoce"><script src='//cloud.highcharts.com/inject/eregoce/1' defer='defer'></script></div>

If we look at what those percentages mean in actual&nbsp;numbers, it comes to around 695,000 Saudis being unemployed.

&nbsp;

<div id="highcharts-icakoki"><script src='//cloud.highcharts.com/inject/icakoki/7' defer='defer'></script></div>

This move to Saudise the public sector by 2020 could particularly affect South Asia, which has over 6.5 million migrants in South Asia.

&nbsp;

<div id="highcharts-uqomahy"><script src='//cloud.highcharts.com/inject/uqomahy/2' defer='defer'></script></div>

Saudi Arabia wants to 'Saudise' its public sector by 2020 to ensure more jobs for locals. So how many of them don't have jobs?

The Saudi Arabian government has announced plans to remove all expatriates from the public sector over the next three years. This is part of the Saudization 2020 plan to ensure more jobs for locals in the kingdom. According to estimates from the International Labor Organization, 5.5% of the labour force in Saudi Arabia was unemployed in 2016. Here's a chart showing unemployment rates for the rest of the countries in the Persian Gulf: If we look at what those percentages mean in actual numbers, it comes to around 695,000 Saudis being unemployed. This move to Saudise the public sector by 2020 could particularly affect South Asia, which has over 6.5 million migrants in South Asia.

Infographic: Unemployment hits Saudi Arabia, govt aims at 'Saudization'

Brazil&#39;s unemployment rate hit 12 per cent between October and December, another record high, official data showed even as the economy is forecast to slowly exit deep recession.

That amounted to 12.3 million people looking for work at the end of 2016, a third more than in the last quarter a year earlier, the Brazilian Institute for Geography and Statistics said.

Market analysts with Gradual Investimentos consultants had predicted the unemployment rate would hold at the previous quarter&#39;s 11.9 per cent, which was also a record high.

Joblessness has dented the popularity of the market-friendly government of President Michel Temer, who took over last year after the impeachment of president Dilma Rousseff with promises to restore the Latin American giant&#39;s economy to health.

In the final quarter of 2015 -- still under Rousseff&#39;s administration -- unemployment was nine per cent, while a year earlier it had been 6.5 per cent.

Brazil&#39;s economy shrank 3.8 per cent in 2015 and is expected to have contracted a further 3.5 per cent in 2016, the worst recession in a century.

The central bank predicts a return to economic growth of 0.8 per cent next year, although the International Monetary Fund foresees growth of just 0.2 per cent.

In another sign of the country&#39;s financial troubles, the central bank said yesterday that the budget deficit hit a record high in 2016. The primary budget deficit -- excluding interest payments -- reached 155.8 billion Brazilian Reals.

The good news was that it remained within the government&#39;s target.

As it tries to stimulate the economy while helping the stubbornly high inflation to keep dropping, the bank is expected to make further cuts to its key interest rate.

Last month the bank cut the rate by a bigger than expected 0.75 per cent to 13 per cent, down from 14.25 per cent in October but still one of the world&#39;s highest.

Market expectations are for cuts to about 10.9 per cent this year. Inflation, meanwhile, has dipped from 10.67 per cent in 2015 to 6.29 per cent in 2016 and is expected to close 2017 at 4.7 per cent.

However, the interest rate cuts have yet to help the jobs market, said Alex Agostini, chief economist at Austin Rating.

Employment is &quot;the last variable that will see improvement&quot; because for now businesses are fighting for greater productivity rather than hiring.

&quot;Those who have work will have to work more,&quot; he said.&nbsp;

(AFP)

A total of 12.3 million people are looking for work at the end of 2016, a third more than in the last quarter a year earlier

Brazil's unemployment rate hit 12 per cent between October and December, another record high, official data showed even as the economy is forecast to slowly exit deep recession. That amounted to 12.3 million people looking for work at the end of 2016, a third more than in the last quarter a year earlier, the Brazilian Institute for Geography and Statistics said. Market analysts with Gradual Investimentos consultants had predicted the unemployment rate would hold at the previous quarter's 11.9 per cent, which was also a record high. Joblessness has dented the popularity of the market-friendly government of President Michel Temer, who took over last year after the impeachment of president Dilma Rousseff with promises to restore the Latin American giant's economy to health. In the final quarter of 2015 -- still under Rousseff's administration -- unemployment was nine per cent, while a year earlier it had been 6.5 per cent. Brazil's economy shrank 3.8 per cent in 2015 and is expected to have contracted a further 3.5 per cent in 2016, the worst recession in a century. The central bank predicts a return to economic growth of 0.8 per cent next year, although the International Monetary Fund foresees growth of just 0.2 per cent. In another sign of the country's financial troubles, the central bank said yesterday that the budget deficit hit a record high in 2016. The primary budget deficit -- excluding interest payments -- reached 155.8 billion Brazilian Reals. The good news was that it remained within the government's target. As it tries to stimulate the economy while helping the stubbornly high inflation to keep dropping, the bank is expected to make further cuts to its key interest rate. Last month the bank cut the rate by a bigger than expected 0.75 per cent to 13 per cent, down from 14.25 per cent in October but still one of the world's highest. Market expectations are for cuts to about 10.9 per cent this year. Inflation, meanwhile, has dipped from 10.67 per cent in 2015 to 6.29 per cent in 2016 and is expected to close 2017 at 4.7 per cent. However, the interest rate cuts have yet to help the jobs market, said Alex Agostini, chief economist at Austin Rating. Employment is "the last variable that will see improvement" because for now businesses are fighting for greater productivity rather than hiring. "Those who have work will have to work more," he said. (AFP)

Brazil: Unemployment at new high, touches 12% in last quarter of 2016

Badly conceived and economically wrong, the euro is at the heart of most of the eurozone&#39;s problems such as stagnation, unemployment and the rise of the far-right, Nobel-prize-winning economist Joseph Stiglitz told AFP on Wednesday.&nbsp; 
 
The outspoken economist said the single currency was structurally flawed from the outset and takes away member states&#39; ability to make crucial adjustments to their economies. 
 
&quot;What they did was to put the cart before the horse. They tried to create the euro before they had the institutions,&quot; said the former World Bank chief economist, 73. 
 
While the euro might be a boon for &quot;a few people and the bankers who can move money more easily around,&quot; it&#39;s less positive for ordinary individuals in the eurozone, suffering from sluggish economies and high unemployment. 
 
&quot;Our societies are stagnating, we are not growing. That would give impetus to extreme parties of the right,&quot; said Stiglitz, as far-right parties gain ground in France, the Netherlands, Germany and Austria in part due to high unemployment. 
 
&#39;Mount Sinai&#39; 
 
Stiglitz, who loosened his tie for the interview in a sweltering Paris, took a blistering swipe at the rules underpinning the single currency, as well as those governing the European Central Bank. 
 
&quot;You have to change the rules when the rules are wrong. If you have the wrong rules, then the consequence is a disaster,&quot; he stressed. 
 
&quot;These rules are not like the ten commandments that God gave from Mount Sinai,&quot; he said, adding that the economics and politics behind the eurozone&#39;s fiscal and monetary rules &quot;needs to be rethought.&quot; 
 
He took aim at both the Stability and Growth pact - which limits member state&#39;s budget deficits to a maximum of three per cent of total output - as well as the strict rules governing the ECB. 
 
The European Central Bank has as its mandate to keep inflation to &quot;close to but below two per cent&quot; but unlike the Federal Reserve in the United States, does not have creating jobs as one of its objectives. 
 
&quot;They tied the hands of the countries in Europe and then they tied the hands of the central bank and said &#39;focus just on inflation&#39;,&quot; charged the economist. 
 
Auf wiedersehen Germany? 
 
So what is the solution, according to Stiglitz?&nbsp; 
 
&quot;More Europe&quot; and &quot;less austerity that just leads to contraction&quot;. 
 
He called for eurobonds&nbsp;- allowing eurozone countries to pool debt issuance that is a taboo subject in Germany.&nbsp; 
 
The economist also appealed for &quot;common deposit insurance, a common way to resolve the problems in the banks.&quot; 
 
And he aimed a barb at Germany, Europe&#39;s economic and political powerhouse that spearheaded the drive towards austerity in the wake of the eurozone&#39;s debt and banking crisis. 
 
&quot;The view that you can recover to full employment and to prosperity by austerity is rejected by most economists, rejected by the IMF, but still seems to be the dominant view in the German government, and particularly in the finance ministry,&quot; he charged. 
 
&quot;The easiest way would be for Germany to leave Europe.&quot; 
 
(AFP)

The single currency, he says, takes away member states' ability to make crucial adjustments to their economies

Badly conceived and economically wrong, the euro is at the heart of most of the eurozone's problems such as stagnation, unemployment and the rise of the far-right, Nobel-prize-winning economist Joseph Stiglitz told AFP on Wednesday. The outspoken economist said the single currency was structurally flawed from the outset and takes away member states' ability to make crucial adjustments to their economies. "What they did was to put the cart before the horse. They tried to create the euro before they had the institutions," said the former World Bank chief economist, 73. While the euro might be a boon for "a few people and the bankers who can move money more easily around," it's less positive for ordinary individuals in the eurozone, suffering from sluggish economies and high unemployment. "Our societies are stagnating, we are not growing. That would give impetus to extreme parties of the right," said Stiglitz, as far-right parties gain ground in France, the Netherlands, Germany and Austria in part due to high unemployment. 'Mount Sinai' Stiglitz, who loosened his tie for the interview in a sweltering Paris, took a blistering swipe at the rules underpinning the single currency, as well as those governing the European Central Bank. "You have to change the rules when the rules are wrong. If you have the wrong rules, then the consequence is a disaster," he stressed. "These rules are not like the ten commandments that God gave from Mount Sinai," he said, adding that the economics and politics behind the eurozone's fiscal and monetary rules "needs to be rethought." He took aim at both the Stability and Growth pact - which limits member state's budget deficits to a maximum of three per cent of total output - as well as the strict rules governing the ECB. The European Central Bank has as its mandate to keep inflation to "close to but below two per cent" but unlike the Federal Reserve in the United States, does not have creating jobs as one of its objectives. "They tied the hands of the countries in Europe and then they tied the hands of the central bank and said 'focus just on inflation'," charged the economist. Auf wiedersehen Germany? So what is the solution, according to Stiglitz? "More Europe" and "less austerity that just leads to contraction". He called for eurobonds - allowing eurozone countries to pool debt issuance that is a taboo subject in Germany. The economist also appealed for "common deposit insurance, a common way to resolve the problems in the banks." And he aimed a barb at Germany, Europe's economic and political powerhouse that spearheaded the drive towards austerity in the wake of the eurozone's debt and banking crisis. "The view that you can recover to full employment and to prosperity by austerity is rejected by most economists, rejected by the IMF, but still seems to be the dominant view in the German government, and particularly in the finance ministry," he charged. "The easiest way would be for Germany to leave Europe." (AFP)

Euro the root of all eurozone's ills, says economist Joseph Stiglitz

Indian external affairs minister Sushma Swaraj rushed to the rescue of 10,000 unemployed Indians who were stranded in Saudi Arabia without food at a camp. She ensured that the&nbsp;Indian Embassy in Jeddah supplied them immediately with food on Saturday.
<div class="twitter-block">
<blockquote class="twitter-tweet" data-lang="en">
The number of Indian workers facing food crisis in Saudi Arabia is over Ten Thousand. It is not 800 as is being reported. <a href="https://twitter.com/JagranNews">@JagranNews</a>
&mdash; Sushma Swaraj (@SushmaSwaraj) <a href="https://twitter.com/SushmaSwaraj/status/759424598114873344">July 30, 2016</a></blockquote>
<script async src="~/platform.twitter.com/widgets.js" charset="utf-8" type="text/javascript"></script></div>
 
Swaraj reacted to a tweet by an Indian national who brought the plight of his fellow citizens to the notice of the Indian government.&nbsp; 
She assured that no Indian worker rendered jobless in Saudi Arabia will go without food. She also said that she was personally monitoring the situation on an hourly basis. 
 
&quot;Large number of Indians have lost their jobs in Saudi Arabia and Kuwait. The employers have not paid wages closed down their factories&quot;, Swaraj tweeted 
 
&quot;While situation in Kuwait is manageable, matters are much worse in Saudi Arabia&quot;, she said. 
 
A man named Imran Khokhar had tweeted that 800 Indians were starving for past three days in Jeddah.
<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/SushmaSwaraj">@SushmaSwaraj</a> after your quick reaction some camps got foods today <a href="https://t.co/BXpwLDCrEx">pic.twitter.com/BXpwLDCrEx</a>
&mdash; Imran Khokhar (@Imran_khokhar84) <a href="https://twitter.com/Imran_khokhar84/status/759382994876502016">July 30, 2016</a></blockquote>
<script async src="~/platform.twitter.com/widgets.js" charset="utf-8" type="text/javascript"></script> 
 
Thousands of Indians have lost their jobs in Saudi Arabia and Kuwait. The factory workers have not been paid wages by their employers and factories were also shut down.
<blockquote class="twitter-tweet" data-lang="en">
There is nothing mightier than the collective will of Indian nation.
&mdash; Sushma Swaraj (@SushmaSwaraj) <a href="https://twitter.com/SushmaSwaraj/status/759427375809503232">July 30, 2016</a></blockquote>
<script async src="~/platform.twitter.com/widgets.js" charset="utf-8" type="text/javascript"></script>Swaraj also appealed to the three million Indians living in Saudi Arabia to help their &quot;fellow brothers and sisters&quot;. 
 
(WION)

Swaraj's response came after an Indian, Imran Khokhar, had tweeted that 800 unemployed nationals were starving in Saudi Arabia

Indian external affairs minister Sushma Swaraj rushed to the rescue of 10,000 unemployed Indians who were stranded in Saudi Arabia without food at a camp. She ensured that the Indian Embassy in Jeddah supplied them immediately with food on Saturday. The number of Indian workers facing food crisis in Saudi Arabia is over Ten Thousand. It is not 800 as is being reported. @JagranNews — Sushma Swaraj (@SushmaSwaraj) July 30, 2016 Swaraj reacted to a tweet by an Indian national who brought the plight of his fellow citizens to the notice of the Indian government. She assured that no Indian worker rendered jobless in Saudi Arabia will go without food. She also said that she was personally monitoring the situation on an hourly basis. "Large number of Indians have lost their jobs in Saudi Arabia and Kuwait. The employers have not paid wages closed down their factories", Swaraj tweeted "While situation in Kuwait is manageable, matters are much worse in Saudi Arabia", she said. A man named Imran Khokhar had tweeted that 800 Indians were starving for past three days in Jeddah. @SushmaSwaraj after your quick reaction some camps got foods today pic.twitter.com/BXpwLDCrEx — Imran Khokhar (@Imran_khokhar84) July 30, 2016 Thousands of Indians have lost their jobs in Saudi Arabia and Kuwait. The factory workers have not been paid wages by their employers and factories were also shut down. There is nothing mightier than the collective will of Indian nation. — Sushma Swaraj (@SushmaSwaraj) July 30, 2016 Swaraj also appealed to the three million Indians living in Saudi Arabia to help their "fellow brothers and sisters". (WION)

Indian foreign minister reaches out to help 10,000 stranded in Jeddah

Zimbabweans stayed at home on Wednesday and foreign banks and most businesses in the capital shut down, in one of the biggest protests against high unemployment, an acute cash shortage and corruption for nearly a decade. 
 
Evan Mawarire, a pastor whose social media movement #ThisFlag organised the &quot;stay-away&quot;, demanded that President Robert Mugabe fire corrupt cabinet ministers and scrap plans to introduce local bank notes or face a two-day shut-down next week. 
 
Wednesday&#39;s protest followed violent clashes between taxi drivers and police on Monday that led to the arrest of 95 people. It also coincided with a strike by doctors, teachers and nurses whose salaries had been delayed. 
 
A devastating drought has compounded economic hardships including high joblessness while an acute cash shortage has angered Zimbabwe&#39;s citizens. 
 
In a story quoting John Mangudya, the governor of Zimbabwe&#39;s central bank, the Financial Times reported on Wednesday that the African Export-Import Bank was arranging a seven-year loan of $986 million so Zimbabwe could pay back arrears to the World Bank. 
 
The FT quoted Mangudya as saying Zimbabwe hoped to pay off its arrears before the September board meetings of the International Monetary Fund and the African Development Bank, paving the way for IMF assistance to alleviate its cash crunch. 
 
African Export-Import Bank and IMF officials could not immediately be reached for comment. 
 
Campaign attracts thousands 
 
The 39-year-old Mawarire started the #ThisFlag campaign in April to protest against corruption, injustice and poverty. 
 
The campaign has attracted thousands of followers who have been speaking out against government excesses. Wednesday&#39;s protest was organised via Twitter, Facebook and WhatsApp. 
 
Mawarire&#39;s campaign includes a series of demands: for Mugabe to fire and prosecute &quot;known&quot; corrupt ministers, for government salaries to be paid on time and for police to remove roadblocks which most people say are posts for bribe taking officers. 
 
&quot;The ball is in your court,&quot; Mawarire wrote on his Facebook page. &quot;We are ready to close down again and this time we will add another day, Wednesday and Thursday. We are not playing and we ask you to take us seriously.&quot; 
 
Mugabe&#39;s spokesman, George Charamba, was not available to comment. 
 
State telecoms regulator POTRAZ said in a statement it would arrest people sending &quot;subversive&quot; messages that cause unrest. 
 
Mugabe, who has held power since Zimbabwe gained independence from Britain in 1980, was attending a scheduled meeting on Wednesday of his party ZANU-PF&#39;s politburo, the party&#39;s top executive organ. Party spokesman Simon Khaya-Moyo declined to say whether ZANU-PF would discuss the protests. 
 
In the volatile township of Mufakose, to the west of Harare, hundreds of youths barricaded roads to keep people from going to work, witnesses said. 
 
More than 40 people were arrested across Zimbabwe for blocking roads and disturbing the peace, said Charity Charamba, a police spokeswoman. Among them was a Belgian tourist held in the resort town of Victoria for unlawful protests, she said, correcting her earlier statement that an Australian had been detained. 
 
There was no need to call out the military, Charamba said. 
 
&quot;The military is not there because in our assessment, for now, the situation has not deteriorated (enough) to warrant the presence of the military,&quot; Charamba told reporters. 
 
Local units of Barclays and Standard Chartered shut their branches in central Harare. Clothing retailers Edgars Stores and Truworths closed stores. 
 
Siyaso, one of the biggest and oldest informal markets in Mbare township near central Harare, was also shut. Few vehicles were on the roads of the capital. Supermarkets like Pick&#39;n&#39;Pay, Ok Zimbabwe and Choppies reported little business. Government departments were open. 
 
Local private media said Zimbabweans in other major cities had also stayed at home, with most businesses closed. Zimbabwe last witnessed such a protest in April 2007. 
 
(Reuters)&nbsp;

In the country's biggest protest in a decade, people stay home and businesses close amid unemployment, cash shortage, corruption and drought

Zimbabweans stayed at home on Wednesday and foreign banks and most businesses in the capital shut down, in one of the biggest protests against high unemployment, an acute cash shortage and corruption for nearly a decade. Evan Mawarire, a pastor whose social media movement #ThisFlag organised the "stay-away", demanded that President Robert Mugabe fire corrupt cabinet ministers and scrap plans to introduce local bank notes or face a two-day shut-down next week. Wednesday's protest followed violent clashes between taxi drivers and police on Monday that led to the arrest of 95 people. It also coincided with a strike by doctors, teachers and nurses whose salaries had been delayed. A devastating drought has compounded economic hardships including high joblessness while an acute cash shortage has angered Zimbabwe's citizens. In a story quoting John Mangudya, the governor of Zimbabwe's central bank, the Financial Times reported on Wednesday that the African Export-Import Bank was arranging a seven-year loan of $986 million so Zimbabwe could pay back arrears to the World Bank. The FT quoted Mangudya as saying Zimbabwe hoped to pay off its arrears before the September board meetings of the International Monetary Fund and the African Development Bank, paving the way for IMF assistance to alleviate its cash crunch. African Export-Import Bank and IMF officials could not immediately be reached for comment. Campaign attracts thousands The 39-year-old Mawarire started the #ThisFlag campaign in April to protest against corruption, injustice and poverty. The campaign has attracted thousands of followers who have been speaking out against government excesses. Wednesday's protest was organised via Twitter, Facebook and WhatsApp. Mawarire's campaign includes a series of demands: for Mugabe to fire and prosecute "known" corrupt ministers, for government salaries to be paid on time and for police to remove roadblocks which most people say are posts for bribe taking officers. "The ball is in your court," Mawarire wrote on his Facebook page. "We are ready to close down again and this time we will add another day, Wednesday and Thursday. We are not playing and we ask you to take us seriously." Mugabe's spokesman, George Charamba, was not available to comment. State telecoms regulator POTRAZ said in a statement it would arrest people sending "subversive" messages that cause unrest. Mugabe, who has held power since Zimbabwe gained independence from Britain in 1980, was attending a scheduled meeting on Wednesday of his party ZANU-PF's politburo, the party's top executive organ. Party spokesman Simon Khaya-Moyo declined to say whether ZANU-PF would discuss the protests. In the volatile township of Mufakose, to the west of Harare, hundreds of youths barricaded roads to keep people from going to work, witnesses said. More than 40 people were arrested across Zimbabwe for blocking roads and disturbing the peace, said Charity Charamba, a police spokeswoman. Among them was a Belgian tourist held in the resort town of Victoria for unlawful protests, she said, correcting her earlier statement that an Australian had been detained. There was no need to call out the military, Charamba said. "The military is not there because in our assessment, for now, the situation has not deteriorated (enough) to warrant the presence of the military," Charamba told reporters. Local units of Barclays and Standard Chartered shut their branches in central Harare. Clothing retailers Edgars Stores and Truworths closed stores. Siyaso, one of the biggest and oldest informal markets in Mbare township near central Harare, was also shut. Few vehicles were on the roads of the capital. Supermarkets like Pick'n'Pay, Ok Zimbabwe and Choppies reported little business. Government departments were open. Local private media said Zimbabweans in other major cities had also stayed at home, with most businesses closed. Zimbabwe last witnessed such a protest in April 2007. (Reuters)

Zimbabwe shuts down to protest financial collapse

The declining number of foreigners working in Indonesia due to the slump in commodity prices is causing a parallel job shortage for locals

Foreign workers are increasingly leaving Indonesia due to the slump in commodity prices that has forced resource companies to slash jobs at a time when the government has also introduced tighter regulations on expatriates in Southeast Asia's biggest economy. The number of temporary residential permits issued to foreigners, including renewals, has fallen for the past few years to 171,944 in 2015 from 194,162 in 2013. In the first five months of this year, there were 72,399 issued but many of those who provide services to expats say they expect a further drop over the whole of 2016 as they are seeing very few new arrivals. As a result, rents on upmarket homes in Jakarta have plummeted and enrolment at international schools has fallen. "The expat drought has been really noticeable in 2016," said Deborah Minicola, a Jakarta-based technical advisor at international relocation company Allied Pickfords. "This time the expat community has been hit from so many angles." The outflow is likely to dent higher-end consumption and drive up unemployment, economists say, as big-spending expats tend to hire multiple workers ranging from housemaids and drivers to gardeners and bodyguards. Some workers who recently lost their jobs are finding it difficult to get new employment. Christiana Ambar Putriani is one example. She has been looking for a job as a part-time housekeeper in Jakarta after her former bosses left for South America a few weeks ago. She hopes to work for an expat family again, as foreigners tend to pay higher wages, but it is getting tougher to find such jobs, she says. The Australian Independent School in Balikpapan, a city in Indonesia's resource-dependent province of East Kalimantan, expects a 36 per cent reduction in its student body this year, said human resources officer Ni Ketut Novia. Three international schools in the city have shut over the past two to three years due to the mass layoffs at mining contractors and a drastic cut in expat allowances, she said. The expat exodus will also create skill shortages that could hold the country back when the commodity downturn is reversed. Low resource prices and a slowdown in demand from China, one of Indonesia's top export markets, have reduced the incentive for exploration or production in the oil and gas and mining sectors, forcing companies to hack back on staff costs. The mining, oil and gas and geothermal sectors accounted for 7.62 per cent of Indonesia's gross domestic product in 2015, down from 11.81 per cent in 2011. Drilling contractors and exploration site surveyors are among the worst-hit, industry experts say. Oil and gas companies operating in the country include Chevron Corp, Total SA and Exxon Mobil Corp . Total's Indonesia spokesman said the company has "manpower planning which is in line with our evolution of activities". Chevron, which is selling assets in Asia including some in Indonesia, declined to comment. Exxon also did not comment. POLICY CONFUSION A PricewaterhouseCoopers survey of 53 firms in the oil and gas sector, released in May, found that almost three-quarters of respondents expected a smaller expat workforce in future, partly because of tighter controls on hiring foreigners. Indonesia opened up dozens of business sectors recently to foreign investors in a move described by President Joko Widodo as a "Big Bang" liberalisation of the economy. Yet business groups say there are mixed signals from the government, which imposes restrictions apparently under pressure from protectionist voices around the president. The manpower ministry is encouraging companies to hire more Indonesian workers, and is tightening its scrutiny of the work permit applications from foreigners, said Ratna Agustina, a director at a firm that provides services to expats. The government also sets an age ceiling of 55 years for foreigners employed by oil and gas contractors, downstream businesses and supporting service providers - with certain exemptions for top executives or those with skills deemed crucial. "If they are above 55, the assumption is that many have ailments and are less productive," said Taslim Yunus, a spokesman for the energy regulator. Adding to the regulatory uncertainty, the government last year introduced requirements for foreigners to be proficient in Indonesian and for companies to hire 10 locals for every expat, only to backtrack less than 12 months later after businesses raised strong protests. The manpower ministry did not respond to requests for comment. The expat exodus hasn't hit the rest of the region as hard. In neighbouring Singapore, the number of foreign professionals, managers and executives earning at least S$3,300 ($2,500) a month actually rose 5 per cent to 187,900 as of December 2015 from a year earlier, the latest official data show. Banks are hiring more compliance professionals in the city-state, but many condominium units have been left empty and office vacancy rates are near their highest level in almost a decade, partly due to the departure of expats from the energy and commodities sector, property agents say. EMPTY HOUSES The gloom is evident on the streets of Kemang, a ritzy neighbourhood in south Jakarta where opulent homes are now festooned with "for-rent" signs. The rental price of one house there, with a garden and swimming pool, has fallen by a third to $3,000 per month, says property broker Julizar. "I've been trying to market this house for six months but there has been no taker." A British national who provides training for energy executives in Indonesia has been hit by a 60 per cent decline in revenue over the past 18 months. This slump, he says, is the most pronounced throughout his 20 years in the industry. He declined to be named, citing company policy. The long-term impact of the restrictions in hiring foreign workers will be "an exacerbation of an existing acute skills shortage", said Lin Neumann, managing director of the American Chamber of Commerce in Indonesia. Widodo has taken steps to move the economy away from its dependence on commodity exports and build a manufacturing base, but Neumann said that isn't enough to offset the shrinkage in mining and oil and gas. (Reuters)

Empty houses and jobless housekeepers: Indonesia's expat exodus harms the economy

Spain, which goes to the polls&nbsp;on Sunday&nbsp;in a repeat general election, is the eurozone&#39;s fourth largest economy and one of the fastest-growing nations in Western Europe, although it suffers from high unemployment and debt. 
 
GROWTH 
 
Spain&#39;s gross domestic product (GDP) expanded by 3.2 per cent in 2015 and growth has remained steady this year despite a political stalemate that has left the country without a government since inconclusive December elections. 
 
GDP expanded by 0.8 per cent between January and March from the previous three months, higher than the average in the eurozone. 
 
Acting Prime Minister Mariano Rajoy&#39;s conservative government predicts the economy will expand by 2.7 per cent this year, then slow to 2.4 percent in 2017. 
 
Spain in 2014 posted its first full-year of growth since a 2008 property crash sent the economy into a tailspin. 
 
Consumer spending is up as is investment by firms while export growth, which help lift Spain out of recession, has lost some of its steam. 
 
FAVOURABLE TAILWINDS 
 
Spain has benefited from favourable tailwinds that have propelled growth such as low interest rates set by the European Central Bank, a favourable euro exchange rate that helps exports, and falling oil prices that have reduced production costs. 
 
Spain is highly dependent on energy imports and the price of a barrel of oil has dropped to around 50 euros from the record highs of over 140 euros a barrel reached in 2008. 
 
But the Bank of Spain warned earlier this month that these beneficial conditions will progressively fade, leading to a slower pace of economic expansion. 
 
LABOUR MARKET REFORM 
 
The outgoing conservative government reduced the amount of compensation which companies must pay workers that they fire and created a new open-ended contract with a one-year trial period. 
 
The government and its backers argue these reforms helped lower Spain&#39;s unemployment rate from a record 26.94 per cent in the first quarter of 2013 to 21 per cent in the first quarter of 2016. 
 
They say the flexibility it introduced especially helped the auto sector. Spain is the second-largest automobile producer in Europe after Germany. 
 
Critics charge that part of the fall in unemployment is due to the drop in the size of Spain&#39;s total workforce as emigration has risen due to the lack of jobs. 
 
The bulk of the jobs that have been created are short-term and low-wage, they add. 
 
The average duration of a new contract in 2015 was just 53.4 days. Spain&#39;s monthly minimum wage, which is paid 14 times a year as in other southern European nations, is 655 euros ($740). 
 
The average annual income in Spain is 10,400 euros per person, according to national statistics institute INE. 
 
DEBT 
 
Spain&#39;s public deficit came in at 5.1 per cent of GDP in 2015, compared with 2.2 per cent in 2007, the year before the country&#39;s property bubble burst. 
 
Spain is facing possible sanctions from the European Commission for repeatedly violating its deficit targets. 
 
The European Union has set a public deficit limit of 3.0 per cent of GDP. The outgoing government predicts it will take Spain until 2018 to bring the deficit below this limit. 
 
EDUCATION 
 
The other Achilles heel of the Spanish economy is education and professional development. 
 
According to the Organisation for Economic Co-operation and Development (OECD), over 27 per cent of Spaniards aged 15-29 are not employed or in school, compared with an average of 15 per cent in the 34 nations that make up the body. 
 
Spain also struggles to retrain unemployed workers, especially low-skilled ones from the construction sector which was hit hard by the collapse of a property bubble in 2008. 
 
(AFP)

Critics say that the bulk of jobs created in Spain in the recent past are short-termed and offer low wages

Spain, which goes to the polls on Sunday in a repeat general election, is the eurozone's fourth largest economy and one of the fastest-growing nations in Western Europe, although it suffers from high unemployment and debt. GROWTH Spain's gross domestic product (GDP) expanded by 3.2 per cent in 2015 and growth has remained steady this year despite a political stalemate that has left the country without a government since inconclusive December elections. GDP expanded by 0.8 per cent between January and March from the previous three months, higher than the average in the eurozone. Acting Prime Minister Mariano Rajoy's conservative government predicts the economy will expand by 2.7 per cent this year, then slow to 2.4 percent in 2017. Spain in 2014 posted its first full-year of growth since a 2008 property crash sent the economy into a tailspin. Consumer spending is up as is investment by firms while export growth, which help lift Spain out of recession, has lost some of its steam. FAVOURABLE TAILWINDS Spain has benefited from favourable tailwinds that have propelled growth such as low interest rates set by the European Central Bank, a favourable euro exchange rate that helps exports, and falling oil prices that have reduced production costs. Spain is highly dependent on energy imports and the price of a barrel of oil has dropped to around 50 euros from the record highs of over 140 euros a barrel reached in 2008. But the Bank of Spain warned earlier this month that these beneficial conditions will progressively fade, leading to a slower pace of economic expansion. LABOUR MARKET REFORM The outgoing conservative government reduced the amount of compensation which companies must pay workers that they fire and created a new open-ended contract with a one-year trial period. The government and its backers argue these reforms helped lower Spain's unemployment rate from a record 26.94 per cent in the first quarter of 2013 to 21 per cent in the first quarter of 2016. They say the flexibility it introduced especially helped the auto sector. Spain is the second-largest automobile producer in Europe after Germany. Critics charge that part of the fall in unemployment is due to the drop in the size of Spain's total workforce as emigration has risen due to the lack of jobs. The bulk of the jobs that have been created are short-term and low-wage, they add. The average duration of a new contract in 2015 was just 53.4 days. Spain's monthly minimum wage, which is paid 14 times a year as in other southern European nations, is 655 euros ($740). The average annual income in Spain is 10,400 euros per person, according to national statistics institute INE. DEBT Spain's public deficit came in at 5.1 per cent of GDP in 2015, compared with 2.2 per cent in 2007, the year before the country's property bubble burst. Spain is facing possible sanctions from the European Commission for repeatedly violating its deficit targets. The European Union has set a public deficit limit of 3.0 per cent of GDP. The outgoing government predicts it will take Spain until 2018 to bring the deficit below this limit. EDUCATION The other Achilles heel of the Spanish economy is education and professional development. According to the Organisation for Economic Co-operation and Development (OECD), over 27 per cent of Spaniards aged 15-29 are not employed or in school, compared with an average of 15 per cent in the 34 nations that make up the body. Spain also struggles to retrain unemployed workers, especially low-skilled ones from the construction sector which was hit hard by the collapse of a property bubble in 2008. (AFP)

Spain struggles to reduce unemployment, debt despite growth

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