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U.S. job growth rebounds sharply, unemployment rate hits 4.4 percent

A job seeker fills out an application at the King Soopers grocery store table at a job fair at the Denver Workforce Center in Denver, Colorado, U.S. February 15, 2017. REUTERS/Rick Wilking

By Lucia Mutikani

WASHINGTON – U.S. job growth rebounded sharply in April and the unemployment rate dropped to a near 17-year low of 4.4 percent, signs of a tightening labor market that could seal the case for an interest rate increase next month despite moderate wage growth.

Nonfarm payrolls jumped by 211,000 jobs last month, the Labor Department said on Friday, well above the monthly average of 185,000 for this year and a jump from the gain of 79,000 in March.

Job gains were driven by a surge in hiring in the leisure and hospitality sector as well as business and professional services.

The drop of one-tenth of a percentage point in the unemployment rate took it to its lowest level since May 2007.

The decline reflected both an increase in hiring and people leaving the labor force.

The labor force participation rate, or the share of

working-age Americans who are employed or at least looking for a job, fell to 62.9 percent from an 11-month high of 63 percent.

The rebound in hiring supports the Federal Reserve’s contention that the pedestrian 0.7 percent annualized economic growth pace in the first quarter was likely “transitory,” and its optimism that economic activity would expand at a “moderate”

pace.

The Fed on Wednesday kept its benchmark overnight interest rate unchanged and said it expected labor market conditions would “strengthen somewhat further.”

The U.S. central bank raised its overnight interest rate by a quarter of a percentage point in March and has forecast two more increases this year.

Average hourly earnings rose seven cents, or 0.3 percent, last month, partly because of a calendar quirk. While that lowered the year-on-year increase to 2.5 percent, the lowest since August 2016, there are signs that wage growth is accelerating as labor market slack diminishes.

A government report last week showed private sector wages recorded their biggest gain in 10 years in the first quarter.

NEAR FULL EMPLOYMENT

The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population. Job growth averaged 178,000 per month in the first quarter.

With the labor market expected to hit a level consistent with full employment this year, payroll gains could slow amid growing anecdotal evidence that firms are struggling to find qualified workers.

Construction payrolls rose 5,000 last month and manufacturing employment advanced by 6,000 jobs. Leisure and hospitality payrolls jumped by 55,000 in April. Professional and business services payrolls rose by 39,000.

Retail payrolls gained 6,300 after two straight months of declines. Retailers including J.C. Penney Co Inc <JCP.N>, Macy’s Inc <M.N> and Abercrombie & Fitch <ANF.N> have announced thousands of layoffs as they shift toward online sales and scale back on brick-and-mortar operations.

Government payrolls jumped 17,000 last month.

Other labor market measures also showed strength last month.

A broad measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, dropped to 8.6 percent from 8.9 percent in March.

The employment-to-population ratio rose one-tenth of percentage point to a fresh eight-year high of 60.2 percent.

((Reporting by Lucia Mutikani; Editing by Paul Simao))

Trump to seek changes in visa program to encourage hiring Americans

President Trump waves as he boards Air Force One. REUTERS/Yuri Gripas

By Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump on Tuesday will sign an executive order directing federal agencies to recommend changes to a temporary visa program used to bring foreign workers to the United States to fill high-skilled jobs.

Two senior Trump administration officials who briefed reporters at the White House said Trump will also use the “buy American and hire American” order to seek changes in government procurement practices to increase the purchase of American products in federal contracts.

Trump is to sign the order when he visits the world headquarters of Snap-On Inc, a tool manufacturer in Kenosha, Wisconsin.

The order is an attempt by Trump to carry out his “America First” campaign pledges to reform U.S. immigration policies and encourage purchases of American products. As he nears the 100-day benchmark of his presidency, Trump has no major legislative achievements to tout but has used executive orders to seek regulatory changes to help the U.S. economy.

The order he will sign on Tuesday will call for “the strict enforcement of all laws governing entry into the United States of labor from abroad for the stated purpose of creating higher wages and higher employment rates for workers in the United States,” one of the senior officials said.

It will call on the departments of Labor, Justice, Homeland Security and State to take action to crack down on what the official called “fraud and abuse” in the U.S. immigration system to protect American workers.

The order will call on those four federal departments to propose reforms to ensure H-1B visas are awarded to the most skilled or highest paid applicant.

H-1B visas are intended for foreign nationals in “specialty” occupations that generally require higher education, which according to U.S. Citizenship and Immigration Services (USCIS) includes, but is not limited to, scientists, engineers or computer programmers. The government uses a lottery to award 65,000 visas every year and randomly distributes another 20,000 to graduate student workers.

The number of applications for H-1B visas fell to 199,000 this year from 236,000 in 2016, according U.S. Citizenship and Immigration Services.

Companies say they use visas to recruit top talent. More than 15 percent of Facebook Inc’s U.S. employees in 2016 used a temporary work visa, according to a Reuters analysis of U.S. Labor Department filings.

Facebook, Microsoft Corp and Apple Inc were not immediately available for a comment outside normal business hours.

A majority of the H-1B visas are, however, awarded to outsourcing firms, sparking criticism by skeptics who say those firms use the visas to fill lower-level information technology jobs. Critics also say the lottery system benefits outsourcing firms that flood the system with mass applications.

The senior official said the end result of how the system currently works is that foreign workers are often brought in at less pay to replace American workers, “violating the principle of the program.”

Indian nationals are by far the largest group of recipients of the H-1B visas issued each year to new applicants.

NASSCOM, the Indian IT service industry’s main lobby group, said it supports efforts to root out any abuses occurring in the H-1B system, but slammed allegations against the sector, saying the idea that H-1B visa holders are cheap labor, is inaccurate and a campaign to discredit the sector.

It warned that any onerous additional restrictions to the visa program would “hurt thousands of U.S. businesses and their efforts to be more competitive,” by hindering access to needed talent. NASSCOM said it would comment further when there are specific proposals under consideration.

The Indian commerce ministry, which has been liaising with the United States on the visa issue, declined to comment. A senior ministry official said it would wait for “actual action” before making any official comment. India had urged the U.S. to be open minded on admitting skilled Indian workers.

India’s No. 2 IT Services firm Infosys has said it is ramping up work on on-site development centers in the United States to train local talent in a bid to address the visa regulation changes under consideration.

Infosys also warned on an investor call last week that its operating margin forecast for fiscal 2018 may get impacted by onerous changes to U.S. visa rules.

Trump’s new executive order will also ask federal agencies to look at how to get rid of loopholes in the government procurement process.

Specifically, the review will take into account whether waivers in free-trade agreements are leading to unfair trade by allowing foreign companies to undercut American companies in the global government procurement market.

“If it turns out America is a net loser because of those free-trade agreement waivers, which apply to almost 60 countries, these waivers may be promptly renegotiated or revoked,” the second official said.

(Writing by Steve Holland and Euan Rocha; Additional reporting by Eric Beech in Washington, David Ingram in San Francisco, Sankalp Phartiyal in Mumbai and Manoj Kumar in New Delhi; Editing by Lisa Shumaker and Himani Sarkar)

U.S. private sector adds 263,000 jobs in March: ADP

FILE PHOTO: People wait in line to attend TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017. REUTERS/Lucy Nicholson/File Photo

(Reuters) – U.S. private employers added 263,000 jobs in March, more than the number they hired in February and well above economists’ expectations, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 187,000 jobs, with estimates ranging from 110,000 to 225,000.

Private payroll gains in the month earlier were revised down to 245,000 from the originally reported 298,000.

The report is jointly developed with Moody’s Analytics.

The ADP figures come ahead of the U.S. Labor Department’s more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment.

Economists polled by Reuters are looking for U.S. private payroll employment to have grown by 175,000 jobs in March, down from 227,000 the month before. Total non-farm employment is expected to have risen by 180,000.

The unemployment rate is forecast to stay steady at the 4.7 percent recorded a month earlier.

(Reporting by Richard Leong; Editing by Meredith Mazzilli)

U.S. job growth beats expectations in January, wages soft

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. job growth surged more than expected in January as construction firms and retailers ramped up hiring, which likely gives the Trump administration a head start as it seeks to boost the economy and employment.

Nonfarm payrolls increased by 227,000 jobs last month, the largest gain in four months, the Labor Department said on Friday. But the unemployment rate rose one-tenth of a percentage point to 4.8 percent and wages increased modestly, suggesting that there was still some slack in the labor market.

Revisions to November and December showed the economy created 39,000 fewer jobs than previously reported. Still, the labor market continues to tighten, which could soon spur a faster pace of wage growth. Federal Reserve officials view the labor market as being at or near full employment.

Economists polled by Reuters had forecast payrolls rising 175,000 last month and the unemployment rate unchanged at 4.7 percent.

President Donald Trump vowed during last year’s election campaign to deliver 4 percent annual gross domestic product growth, largely on the back of a plan to cut taxes, reduce regulations, increase infrastructure spending and renegotiate trade deals in the United States’ favor.

Although details on the policy proposals remain sketchy, consumer and business confidence have surged in the wake of Trump’s election victory last November. But with the economy near full employment, some economists are skeptical of the 4 percent growth pledge. Annual GDP growth has not exceeded 2.6 percent since the 2007-08 recession.

DISAPPOINTING WAGE GROWTH

Average hourly earnings increased only three cents or 0.1 percent last month. December’s wage gain was revised down to 0.2 percent from the previously reported 0.4 percent increase.

January’s small rise in average hourly earnings is a surprise given that the minimum wage took effect in more than a dozen states last month. The small gain lowered the year-on-year increase in earnings to 2.5 percent from 2.8 percent in December.

Sluggish wage growth, if it persists, would suggest only a gradual pace of rate increases by the Fed. The U.S. central bank, which hiked rates in December, has forecast three rate increases this year.

On Wednesday, the Fed kept its benchmark overnight interest rate unchanged in a range of 0.50 percent to 0.75 percent. It said it expected labor market conditions would strengthen “somewhat further.”

With its January employment report, the government published its annual “benchmark” revisions and updated the formulas it uses to smooth the data for regular seasonal fluctuations. It also incorporated new population estimates.

The government said the level of employment in March of last year was 60,000 lower than it had reported. As the labor market nears full employment, the pool of workers is shrinking, which is slowing job growth.

The shift in population controls mean figures on the labor force or number of employed or unemployed in January are not directly comparable with December.

The labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, was at 62.9 percent in January, the highest level since September.

All sectors of the economy added jobs in January.

Manufacturing payrolls increased by 5,000 jobs, rising for a second straight month as the oil-related drag on the sector eases. Construction employment jumped 36,000, the largest increase since March, likely boosted by warm weather, after December’s paltry 2,000 gain.

Retail payrolls, surprisingly surged 45,900, the biggest rise since February. Retailers, including Macy’s <M.N>, Sears <SHLD.O>, American Apparel and Abercrombie & Fitch <ANF.N> announced job cuts in January amid store closures. Department store sales are being undercut by online retailers, led by Amazon.com <AMZN.O>.

Government employment fell for a fourth straight month in January. Further declines are likely after the Trump administration enforced a hiring freeze on civilian federal government workers on Jan. 22.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Wal-Mart to create 10,000 U.S. jobs in 2017

A general view shows a Wal-Mart store in Monterrey, Mexico,

(Reuters) – Wal-Mart Stores said it would create about 10,000 jobs in the United States this year, adding to its near 1.5 million workforce in the country, by opening or remodeling stores and investing in its e-commerce business.

The number of jobs being created is consistent with previous years, said Lorenzo Lopez, a spokesman for Wal-Mart, the largest U.S. retailer and private employer.

Several U.S. companies, particularly automakers, have announced plans to create jobs in the United States since the U.S. election victory of Donald Trump.

Trump, who takes office on Jan. 20, has repeatedly singled out and criticized companies across industries for not doing more to keep jobs in the United States.

General Motors Co will announce as early as Tuesday long-held plans to invest about $1 billion in its U.S. factories, a person briefed on the matter told Reuters.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio D’Souza)

Job growth slows, but wages rebound strongly

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. employment increased less than expected in December but a rebound in wages pointed to sustained labor market momentum that sets up the economy for stronger growth and further interest rate increases from the Federal Reserve this year.

Nonfarm payrolls increased by 156,000 jobs last month, the Labor Department said on Friday. The gains, however, are more than sufficient to absorb new entrants into the labor market.

Fed Chair Janet Yellen has said the economy needs to create just under 100,000 jobs a month to keep up with growth in the work-age population. Employers hired 19,000 more workers than previously reported in October and November.

“Job creation and overall labor market conditions remain solid. With the potential for stronger fiscal stimulus in the form of infrastructure spending and tax cuts, job creation appears likely to remain on a solid footing in 2017,” said Jim Baird, chief investment officer for Plante Moran Financial Advisors in Kalamazoo, Michigan.

The economy created 2.16 million jobs in 2016. Average hourly earnings increased 10 cents or 0.4 percent in December after slipping 0.1 percent in November. That pushed the year-on-year increase in earnings to 2.9 percent, the largest gain since June 2009, from 2.5 percent in November.

While the unemployment rate ticked up to 4.7 percent from a nine-year low of 4.6 percent in November that was because more people entered the labor force, a sign of confidence in the labor market.

The employment report added to data ranging from housing to manufacturing and auto sales in suggesting that President-elect Donald Trump is inheriting a strong economy from the Obama administration. The labor market momentum is likely to be sustained amid rising business and consumer confidence.

Trump, who takes over from President Barack Obama on Jan. 20, has pledged to increase spending on the country’s aging infrastructure, cut taxes and relax regulations. These measures are expected to boost growth this year.

But the proposed expansionary fiscal policy stance could increase the budget deficit. That, together with faster economic growth and a labor market that is expected to hit full employment this year could raise concerns about the Fed falling behind the curve on interest rate increases.

The U.S. central bank raised its benchmark overnight interest rate last month by 25 basis points to a range of 0.50 percent to 0.75 percent. The Fed forecast three rate hikes this year.

The dollar rose against a basket of currencies on the employment data, while U.S. government bonds were trading lower. U.S. stock index futures rose.

FACTORY JOBS RISE

Economists had forecast payrolls rising by 178,000 jobs last month and the unemployment rate ticking up one tenth of a percentage point to 4.7 percent.

A broad measure of unemployment that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment fell one-tenth to a more than 8-1/2-year low of 9.2 percent.

Employment growth in 2016 averaged 180,000 jobs per month, down from an average gain of 229,000 per month in 2015. The slowdown in job growth is consistent with a labor market that is near full employment.

There has been an increase in employers saying they cannot fill vacant positions because they cannot find qualified workers. The skills shortage has been prominent in the construction industry.

Even as the labor market tightens, there still remains some slack. The labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, rose one-tenth of percentage point to 62.7 percent in December.

The participation rate remains near multi-decade lows. Some of the decline reflects demographic changes.

December’s job gains were broad, with manufacturing payrolls rising 17,000 after declining for four straight months. Construction payrolls fell 3,000 in December after three consecutive months of increases.

Retail sector employment rose 6,300 after increasing 19,500 in November. Department store giants Macy’s <M.N> and Kohl’s Corp <KSS.N> this week reported a drop in holiday sales. Macy’s said it planned to cut 10,000 jobs beginning this year.

Department stores have suffered from stiff competition from online rivals including Amazon.com <AMZN.O>. Temporary help declined 15,500 last month, the biggest drop since January.

Education and health services employment rose 70,000, the biggest increase since February. Government employment increased 12,000 in December.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Biggest jump in a month for global stocks as oil price rises

Brokers work on the trading floor at IG Index in London, Britain

By Marc Jones

LONDON (Reuters) – World shares had their biggest jump in over a month on Monday as a pact between Saudi Arabia and Russia sent oil prices surging and lacklustre U.S. jobs figures pushed back Federal Reserve interest rate rise expectations.

European stocks touched an eight-month high as oil and mining firms cheered what at one point was a 5 percent leap in crude prices.

Saudi Arabia and Russia, two of world’s top oil producers, announced at a meeting of global leaders in China that they would start working together to stabilise the market, including limiting output.

“Freezing production is one of the preferred possibilities,” Saudi Energy Minister Khalid al-Falih said speaking alongside Russian counterpart Alexander Novak. “But it does not have to happen specifically today.”

Oil eventually halved its initial gains as traders noted the lack of immediate measures, but the buoyant mood elsewhere remained intact.

Bonds were in favour after U.S. payrolls numbers on Friday had tamed Fed bulls, while emerging market stocks were gunning for their best day since July as they climbed 1.3 percent.

“We don’t expect the Fed to do anything until next year so that lays the ground for further advances,” said TD Securities strategist Paul Fage.

Though the Fed reaction and oil price surge were the markets’ main drivers, they were not the only factors in play.

The yen turned around its recent losing streak as the head of the Bank of Japan disappointed investors who had expected clearer signals that Tokyo’s monetary policy would be eased further this month.

Though Bank of Japan Governor Haruhiko Kuroda signalled its already massive stimulus programme would continue, there was nothing explicit enough to suggest an expansion is imminent. Later Japan PM Shinzo Abe said he trusted Kuroda to “take the right steps”.

The dollar dropped 0.6 percent to 103.35 yen having gained more than 4 percent against the Japanese currency in the last six days. The euro inched up to $1.1115.

Britain’s sterling also did damage to the greenback. It hit a one-month high of 1.3360 as data showed the UK services industry bounced back strongly from a seven-year low hit after the vote to leave the European Union.

The Markit/CIPS Purchasing Managers’ Index (PMI) jumped to 52.9 in August from July’s 47.4. It was the biggest one-month gain in the survey’s 20-year history and one which beat all forecasts in a Reuters poll.

“It remains too early to say whether August’s upturn is a dead cat bounce or the start of a sustained post-shock recovery,” IHS Markit economist Chris Williamson said.

“But there’s plenty of anecdotal evidence to indicate that the initial shock of the June vote has begun to dissipate.”

HOT OIL

U.S. markets were closed for a Labour Day public holiday meaning there was no trading on Wall Street. [.N]

Oil’s rise was its the second bumper session in a row as the Saudi/Russia pact fanned speculation that major producers could strike a firmer deal in Algeria later this month.

Brent crude futures for November delivery were last up $1 per barrel at $47.70 a barrel having been as high as $49.40 and U.S. crude for October delivery was up at $45.25 having been as high as $46.53 a barrel.

“Verbal intervention was again needed to trigger a recovery towards $50,” senior ABN Amro economist Hans van Cleef said, referring to the Saudi and Russian comments.

In Asia overnight, MSCI’s broadest index of Asia-Pacific shares outside Japan ended up 1.6 percent, while Japan’s Nikkei rose 0.7 percent to its highest close since May 31.

Friday’s U.S. jobs report showed non-farm payrolls rose by 151,000 jobs in August after an upwardly revised 275,000 increase in July. Economists polled by Reuters had expected a rise of 180,000.

U.S. Fed Funds futures prices indicated investors were now pricing in only around a 20 percent chance of a September hike down from over 30 percent before the jobs data. It remains at more than 60 percent by the end of year.

(Additional reporting by Lisa Twaronite in Tokyo, Ahmad Ghaddar in London Editing by Jeremy Gaunt)

U.S. jobless claims hit three month low

A sign advertising "Summer Jobs" hangs on a lamp post in Somerville, Massachusetts,

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits unexpectedly fell last week, hitting a three-month low as the labor market continues to gather momentum.

Initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 253,000 for the week ended July 16, the lowest reading since April, the Labor Department said on Thursday. Claims for the prior week were unrevised.

Claims are near the 43-year low of 248,000 touched in mid-April. Economists polled by Reuters had forecast initial claims rising to 265,000 in the latest week.

Claims have now been below 300,000, a threshold associated with a healthy labor market, for 72 straight weeks, the longest stretch since 1973. Claims tend to be volatile around this time of the year when automobile manufacturers normally idle assembly lines for retooling. Some, however, often keep production running, which can throw off the model the government uses to strip out seasonal fluctuations from the data.

A Labor Department analyst said there were no special factors influencing last week’s claims data and no states had been estimated. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 1,250 to 257,750 last week.

U.S. financial markets were little moved by the data, with investors’ attention focused on a speech by European Central Bank president Mario Draghi.

The claims data covered the survey week for July’s nonfarm payrolls. The four-week average of claims fell 9,000 between the June and July periods, suggesting another month of strong job gains. The economy added a whopping 287,000 jobs in June, the largest this year.

Labor market strength, characterized by the very low layoffs and solid pace of hiring, is boosting consumer spending, which in turn is providing a lift to economic growth.

According to a Reuters survey of economists, the government is expected to report next week that the economy grew at a 2.6 percent annualized rate in the second quarter, an acceleration from the 1.1 percent pace logged in the first three months of the year.

Although a separate report on Thursday showed factory activity in the mid-Atlantic region contracted this month, a surge in new orders and shipments suggested the worst of the manufacturing downturn was probably over.

The Philadelphia Federal Reserve said its business index fell to a reading of -2.9 this month from 4.7 in June.

Twenty-two percent of the firms, which participated in the survey, reported an increase in activity – three points lower than in June. Fifty-one percent of firms reported steady activity this month, little changed from June.

The new orders sub-index rose to 11.8 this month from -3.0 in June, with shipments rebounding to 6.3 from -2.1 in June.

Manufacturing has been hurt by a strong dollar and sluggish global demand, which have undercut U.S. exports, as well as efforts by businesses to reduce an inventory overhang. Lower oil prices have also weighed on manufacturing as energy firms cut back on capital spending in response to reduced profits.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

Yellen faces fine balance on FED rate hike

Federal Reserve Chair Janet Yellen speaks at the Radcliffe Institute for Advanced Studies at Harvard University in Cambridge

By Jonathan Spicer

PHILADELPHIA (Reuters) – Federal Reserve Chair Janet Yellen will likely keep the door open to an interest rate hike within the next few months when she speaks on Monday, while striking a balanced tone about recently disappointing jobs growth and mixed signals in the U.S. economy.

Yellen’s speech to the World Affairs Council of Philadelphia at 12:30 p.m. ET (1630 GMT) will address the economy and monetary policy, and is the last public comment by U.S. central bankers before their June 14-15 meeting.

The chances of a rate hike at that meeting were all but killed by a report showing the U.S. economy added only 38,000 jobs in May, muting recently upbeat data on consumer spending and overall growth. A sensitive British vote on European Union membership set for later this month is another reason for the Fed to wait.

Economists now see July or September as more likely timing for a quarter-point policy tightening, after the central bank lifted off from near-zero rates in December.

Yellen could note that the May report does not necessarily suggest a more permanent gloom for the labor market, where unemployment at 4.7 percent is at its lowest level since the beginning of the recession. On rates, she could repeat her line from a week-and-a-half ago that a rise could be appropriate “probably in the coming months.”

Millan Mulraine, deputy chief economist at TD Securities in New York, said he expects the Fed Chair to reiterate a “relatively upbeat outlook on growth and inflation, while continuing to emphasize the need for caution.”

While likely keeping a July rate hike on the table, Yellen “will emphasize that any decision to act will be highly data-dependent,” he wrote in a note to clients.

The worst monthly jobs growth in more than 5-1/2 years comes as other parts of the world’s largest economy appear to have rebounded from a sluggish winter. U.S. inflation remains below a 2 percent target but has shown signs of stability.

Earlier on Monday, Boston Fed President Eric Rosengren, a voter on policy this year, said that while rate hikes are on the horizon, the central bank will need to determine whether the employment report “is an anomaly or reflects a broader slowing in labor markets.” [L1N18X0C3]

(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)

UK would lose at least half million jobs if vote to leave EU

A British Union flag flutters in front of one of the clock faces of the 'Big Ben' clocktower of The Houses of Parliament in central London

EASTLEIGH, England (Reuters) – Britain would lose at least half a million jobs within two years of a vote to leave the European Union and a fall in the value of the pound would push up inflation sharply, finance minister George Osborne said on Monday.

With a month to go until Britain holds its European Union membership referendum, Osborne said workers’ earnings, when adjusted for inflation, would be almost 3 percent lower in two years’ time, equivalent to a pay cut worth almost 800 pounds a year for someone working full time on the average wage.

Osborne was speaking as the finance ministry published a new report on the short-term implications of an “Out” vote.

(Writing by William Schomberg, editing by Kate Holton)

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