US jobless hits two-year low as posts created

Hopes that the US economy is firmly on the road to recovery were heightened yesterday as new figures showed the jobless rate falling to a two-year low.

The US labour department said the unemployment rate fell to 8.8 per cent in March, while the economy added a net 216,000 jobs, offsetting layoffs made by local governments. Factories, retailers, education, healthcare and an array of professional and financial services businesses expanded their payrolls.

The second straight month of brisk hiring is the latest sign that the economy is strengthening nearly two years after the recession ended.

Hugh Johnson, chief investment officer at Hugh Johnson Advisors in Albany, New York, said: "The economy continues to recover, it's very good news."

The private sector accounted for all the new posts in March, adding 230,000 positions after February's 240,000 rise. Government employment fell 14,000, down for a fifth straight month.

January and February employment figures were revised to show 7,000 more jobs than previously reported.

The dollar climbed to a three-month high against the yen after the news.