US unemployment rate hits new low

The US unemployment rate fell to a new two-year low in March of 8.8%, from 8.9% in February.

It was the fourth monthly fall in a row. The unemployment rate has fallen by a percentage point during the last four months.

Employers created 216,000 jobs in March, the US Department of Labor said, higher than market expectations.

“This suggests the recovery is continuing,” said David Sloan of IFR Economics.

Most of the new jobs were created in the private sector, in factories, shops and health care, as well as in education and several professional and financial services.

The new private sector jobs offset job losses in the public sector, mainly resulting from cuts by local governments.

“The numbers are obviously good and one can hope that we will continue to see the market rise in continuing months,” said Ernard Baumohl, managing director and chief global economist of Economic Outlook Group.

Earlier this week, the US Department of Commerce unexpectedly cut its estimate of fourth-quarter growth to an annualised rate of 2.8%, from 3.2% previously.