Dismal US jobs data hits market

Job figures in the United States, showing employers hired at the slowest pace in nine months during March, sparked sharp falls on markets yesterday.

Just 88,000 non-farm jobs were added last month, well below expectations for a 200,000 increase. The news contributed to the FTSE 100 closing 1.5 per cent, or more than 94 points, lower at 6,249.78.

Analysts suspected some of the US jobs weakness was due to tax hikes in January.

Although it was unclear whether federal budget cuts in March played a significant role, nervousness over the cuts may have made businesses wary about taking on staff. The jobless rate edged down a tenth of a point to 7.6 per cent largely due to people leaving the workforce.