US jobs hit 3-year high.

Employment in the US increased in March by the most in three years and the unemployment rate held at 9.7 per cent as companies gained confidence the economic recovery will be sustained.
Payrolls rose by 162,000 last month, less than anticipated, after a revised 14,000 decrease in February that was smaller than initially estimated, figures from the Labour Department in Washington showed on Friday. The March increase included 48,000 temporary workers hired by the government to help conduct the 2010 census. Average hourly earnings fell and hours worked rose.
Caterpillar Inc is among companies adding staff, indicating the recovery that began in the second half of 2009 is starting to foster the job gains needed to lift consumer spending and sustain the economic expansion.
Nonetheless, unemployment may be slow to recede as formerly discouraged employees enter the labour force looking for work, signaling the Federal Reserve will keep interest rates low in coming months.
Stock-index futures reversed losses and Treasury securities declined after the report. Futures on the Standard & Poor’s 500 Index expiring in June rose 0.2 per cent to 1,176.4 in early New York trading. The 10-year Treasury note fell, pushing up the yield to 3.92 per cent from 3.87 per cent late on Thursday.
Private payrolls increased by 123,000 in March.

Economists’ Forecast:
Overall payrolls were forecast to increase by 184,000, according to the median estimate of 83 economists surveyed by Bloomberg News. Estimates ranged from a decline of 40,000 to a gain of 360,000.
The jobless rate was projected to hold at 9.7 per cent. Forecasts ranged from 9.5 per cent to 9.9 per cent. The unemployment rate was unchanged even as more people entered the workforce.
Average hourly earnings fell 0.1 per cent in March, the first drop since comparable records began in 2006.
Part of the payroll gain last month likely reflected a rebound from the February blizzards that set seasonal snowfall records in cities including Washington and Philadelphia, shuttering some businesses during the week of the government survey.

Dollar Gains:
Meanwhile, the dollar rose broadly, hitting a fresh 7-month high against the yen on Friday following the US jobs data.
The euro fell 0.5 per cent against the dollar to $1.3514. Traders said global macro hedge funds had sold euros following the jobs data.
Against the yen, the dollar rose as high as ¥94.54, the highest since late August, according to Reuters data. It was last at ¥94.43, up 0.6 per cent on the day.