Global recovery hopes revive with better US jobless figures

Hopes of a recovery in the global economy leapt today as official figures on US unemployment came in far stronger than expected.

Far fewer Americans were laid off than expected in February despite severe winter weather which forced many companies to close temporarily in big cities like Washington and Philadelphia.

Payrolls dropped 36,000 compared with forecasts of a miserable 50,000 rise in lay-offs. The rate of unemployment remained at 9.7% compared with the UK's 7.8%.

Although it still marked a sharp increase in people losing their jobs, analysts took the view that it meant the trend was slackening and could soon reverse to a position where businesses were becoming confident enough to start hiring again.

"This is a good number. In fact, considering weather-related issues, this can be even viewed as growth," said Peter Cardillo, economist at investment manager Avalon Partners.