Reuters reported that US companies created jobs at the fastest pace in five years in April 2011, pointing to underlying strength in the economy even as the jobless rate rose to 9%.

The Labor Department said that private sector hiring, including a big jump at retailers, boosted overall non farm payrolls by 244,000, the largest increase in 11 months. Economists had expected a gain of only 186,000. The private sector created 268,000 jobs, the most since February 2006, while government payrolls shrank.

The data backed views the economic recovery would regain speed this quarter after stumbling in the first three months of the year. Earlier this week, other reports pointed to a slowing in the labor market.

Mr Aaron Smith, a senior economist at Moody's Analytics in West Chester, said that "What we're seeing is a sustained pick up in hiring and it suggests that businesses have gained enough confidence to look past short term fluctuations in demand."

(Sourced from www.ruters.com)