The number of jobs lost in the US economy over the last month has been considerably less than analysts had forecast, leading to a slight rally on Wall Street over the close of the week as markets responded to the positive news.
US unemployment figures showed a fall in employment numbers by just 54,000 in August – down from 131,000 in the previous month, and down even further from the general analysts’ forecast of 100,000 job losses, resulting in strong closes on markets in the US, Europe and the UK.
As a result of recovering economic fortunes and vital signs emerging within the previously stagnant construction industry, the lower than expected drop in employment numbers is seen as a bellwether for potentially improving economic conditions, allowing markets to rally behind the stock markets in anticipation of improving performance.
The announcement comes alongside a statement from President Obama citing the need for a growing US middle class as part of the process of sustainable economic recovery. With a raft of tax breaks and economic stimuli, and wide-ranging rhetorical pledges to support the traditional US middle class, it is hoped that the impact of the measures will be felt globally over the coming months.