US jobs surprise with strong August number

US payrolls advanced in August ahead of analyst’s expectations with 1.4m new roles added against an expected number in the region of 700,000. The number has been taken as both a positive on the strength of the recovery and a negative as law makers in Washington see less impetus for further economic stimulus given the strength of people going back to work. The second point to note from August was the unemployment rate in the US dropped to 8.4% which is now well below the 10% unemployment rate seen in the aftermath of the financial crisis. Again, further evidence of the US’s jobs recovery leading to less motivation for more economic stimulus.