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America's economy roars with fastest job creation in over two years


Business

America's economy roars with fastest job creation in over two years

American companies added 263,000 workers in March, according to a report from payrolls processor ADP. That was the fastest rate of job creation in the US since December 2014.

More jobs are expected to be created in the coming months, shortening the odds on the Federal Reserve moving to calm inflation with two more interest rate rises this year.

Pressure will build up for wage rises and the labour market, already tight, will get tighter.

Wage growth is currently running at 2.5 to 3.0 percent a year, low by historical standards.

On Friday the more comprehensive Labor department figures come out for both private and public-sector workforces.

The figures easily beat the average forecast by over 100,000 jobs.

One factor that could affect wages pressure is immigration. Farmers are already competing for field hands as many have left the US fearing their arrest and deportation for working there illegally.

If President Trump makes good on his promise to deport illegals on a large scale, the competition for workers will only get more fierce.