US shares rise as fewer jobs axed in private sector

| May 6, 2009 | 0 Comments

Figures released by ADP Employer Services have revealed that fewer jobs were lost in the private sector in April in the US.

The news was welcomed on the stock markets with the Dow Jones industrial average up by 76.14 points to 8,486.79 in early trading.

Furthermore, the euro rose against the dollar to $1.3355, while the US currency rose to 98.69 yen, up from 98.40 yen prior to the release of the data.

According to the payrolls firm, private employers shed 491,000 jobs in April - far below the 650,000 forecast by economists and less than the 708,000 lost the previous month.

ADP said the service-providing sector shed 229,000 jobs while the goods-producing sector axed 262,000 jobs.

The figures represent the lowest job loss number almost six months and comes just 24 hours after US Federal Reserve chairman, Ben Bernanke, said the US economy may rebound in late 2009.

However, the Fed Chairman cautioned that further sizeable job losses and rising unemployment are expected in the next few months.

In the meantime, the Government’s last weekly jobless claims report on April 30 showed that new claims for unemployment benefits fell much more than expected.

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