Jobs seen stimulate economic revival hopes

A sign "now hiring" is seen restaurant a McDonalds at FairOaks, Virginia, April 19, 2011.

Credit: Reuters/Larry DowningBy Lucia Mutikani

WASHINGTON. Friday, July 8, 2011 12: 00 pm EDT

WASHINGTON (AFP) - the US companies is probably accelerated hiring in June, while the economy recovers of a blunder in recent months although employment growth should not be strong enough to eat in a high unemployment.

Non-farm compensation is considered to be increased by 90,000, according to a Reuters survey last week. In may, employment rose a paltry 54 000.

Many economists raised their forecasts Thursday after a stronger than expected reading the U.S. private hiring of ADP payroll processor, and they now expect gains anywhere between 125,000 and 175,000.

All jobs created, will represent the private sector has been the trend over the past seven months, with layoffs in the State and local governments continue.

Nevertheless, the unemployment rate, which is derived from a separate survey of households should be stable to 9.1%.

The Ministry of labour will publish its report on the employment closely monitored at 8: 30 am. The report offers one of the best early reads on the health of the US economy and sets the tone for economic data for the rest of the month.

"We have always described the difficult environment of the past months over a sweet as evidence of a relapse, as patch", said Leo Appennines, Director of forecasting global at the Economist Intelligence Unit, New York.

"Figures Friday will probably confirm that, although we do are not back where we were at the beginning of the year, at least we are going in the right direction.".

182,250 Average non-farm job growth in the first four months of the year. Economists view the brake on hiring in may, with the smallest gain in eight months, as an aberration.

Economic activity in the six months of the year was hampered by rising prices of raw materials and supply chain disruptions after the devastating earthquake of the Japan in March.

But these restrictions have been facilitated. Gasoline prices fell 38 cents to their peak just above $4 per gallon, in early may, and production of motor vehicles is picking up as the supply of parts of the Japan begins to normalize.

FINDING MORE FARM-TO-GROUND

"The economy rather than demotion moves a little bit." We had a soft spot and now we are in train of firmer ground, said Stuart Hoffman, Chief Economist at PNC Financial Services Group in Pittsburgh.

Any sign that improve labour market is to rescue the administration of the Obama. He fought for the economy to create enough jobs to absorb the unemployment of $ 13.9 million Americans.

The economy is the top concern among voters and will feature prominently in the submission of the President Barack Obama to the re-election of next year. So far, the economy has recovered only a fraction of the jobs lost during the recession more than 8 million.

At the same time, the Federal Reserve - wrapped link-purchase of 600 billion last week program designed to stimulate lending and growth - seems unlikely to take other measures to stimulate the economy.

The economy must create between 125,000 and 150,000 new jobs per month only to absorb the new entrants work force.

"We expect to see the employment growth in the second half of the year of about 200 000 per month, which will be a little shaving the unemployment rate," said Abruzzese. "We do not believe that the rate of unemployment at the end of the year probably downwards in the percentage of Mi-8 (Beach), may be a little lower than that".

The private service sector should take into account most of the growth of employment in June. Compensation of manufacturing is expected to have rebounded after having contracted in may for the first time in seven months, with the recovery mainly reflecting increased the production of motor vehicles.

Construction employment will probably continue to surprise on the head, despite the weakness of the real estate. Remuneration of the construction have increased since February.

The Government should have decreased for an eighth straight month as the municipalities and the Governments of the States continue to wield the ax for balancing the budget.

The report should show the average work week unchanged at 34.4 hours. Employers have been reluctant to extend the hours because of the uncertainty surrounding the recovery, and an increase in the work week would be a sign that more permanent hiring is in the cards.

Average hourly earnings are expected to edged 0.2 per cent after that increase of 0.3% in may, which would make little consumers to cash-strapped but reassuring financial markets based on the salary of inflation is not a risk.

(Reports by Lucia Mutikani;) (Editing by Leslie Adler)