This comfortably beat forecasts of 226,000 in a sign the US economy is bouncing back from a poor first quarter of 2015.
“Two steps forward and one step back along the path to reflation as US non-farm payrolls beat expectations and wages rose at their fastest pace since August 2013 but unemployment crept up to 5.5%,” said Brewin Dolphin head of research Guy Foster.
“Unsurprisingly the dollar rose and bonds suffered further. There are quality issues with recent US wage trends which should inject a note of caution for policy makers,” Foster added.
“Jobs were generated across a broad range of sectors and the average hourly wage increased by 2.3%,” said Helal Miah, investment research analyst at The Share Centre.
“This should help reassure some investors that the US economy is still on the growth path after the poor first quarter it experienced. The US has been creating jobs at a fairly steady rate over the last year with it being reported that those who gave up looking for work are now back on the hunt for employment. Subsequently, the unemployment rate ticked up to 5.5% from 5.4%.”
“These numbers paint a good picture of the US economy and therefore should be encouraging news for UK equity investors given our strong trade relations,” Miah continued.
“However, this announcement does now have the potential to bring forward the timing of the first interest rate rise and as a result the US Dollar has appreciated mildly against most other currencies,” she added.
