By TraderVox.com
Tradervox (Dublin) – There has been mixed signs in the US economic recovery and American companies are wary of this. However, hiring in the US may have increased in May after it gained the least in six months last month. According to economists keeping track of the US economy, this is a show of progress in the labor market which is good for the economy and the US dollar. A report to be released today is set to show that payrolls increased by 150,000 workers according to the market expectation after it gained by 115,000 in April.
However, analysts are claiming that there need to be a larger job and wage gain to spur a consumer spending and hiring that is needed to accelerate economic growth. But there is an impediment to this; the raging euro crisis and the slowing economic growth in emerging markets such as China and Brazil may lead American companies to limit the number of workers as they wait for evidence of growth in the US economy. Assurances from the government and the Federal Reserve may be needed to ensure that large American companies have confidence in the economy.
The Labor Department report is also expected to show that the private sector injected 164,000 jobs in the market in May after an increase of 130,000 was registered in April. If the report confirms these predictions, the total payrolls would bring a monthly average of 190,600 for the first five months of 2012 which is an increase from the 176,200 average monthly payrolls for the first five months of 2011. This might give American companies some confidence in the US economy. The unemployment rate is expected to drop to 8.1 percent according to most analysts in the market. This is a new three-year low and will spur the dollar to finish the week and start a new month on a high against most major peers.
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