US jobs report eases economy fears The S&P 500 index smashed through the 1,600 mark for the first time in history after a better than expected jobs report eased fears about the health of the world's largest economy. Non-farm payrolls were up 165,000 in April compared with the 140,000 gain forecast by analysts. The unemployment rate fell to 7.5 per cent, its lowest level since December 2008. The figures suggest that the US economy has not suffered a "spring swoon," but remains locked on a path of modest but resilient growth, held back by tax rises and cuts to public spending. "It was, in general, a positive report," said Paul Ashworth at Capital Economics in Toronto. We still do have a negative impact from the fiscal squeeze. It's not a spring swoon - but equally, second-quarter growth doesn't look that great. Big upward revisions for February and March - 114,000 more jobs collectively than previously thought - brought average monthly jobs growth for the last three months to a solid 212,000. That suggests a run of bad data recently on retail sales, durable goods orders and other indicators - which had led to fears of a broader economic slowdown - was more due to bad weather in March. The Obama administration used the jobs report to demand a replacement for across-the-board budget cuts than began at the start of March. "Now is not the time for Washington to impose self-inflicted wounds on the economy," said Alan Krueger, chairman of the president's Council of Economic Advisers, on the White House blog. Investors cheered a jobs report that seemed to eliminate a risk to the powerful run that has taken the S&P 500 up by more than 13 per cent this year. The benchmark closed 1.1 per cent higher to 1,614.42. The yield on 10-year Treasuries was 11 basis points higher at 1.74 per cent. On the Dow Jones Industrial Average, 25 of 30 companies rose as that benchmark crossed 15,000 for the first time, closing at 14,973.96. The dollar surged against the yen but fell back against the euro as investors switched into riskier assets. Commodities rallied. Hours worked can be a leading indicator of hiring as employers ask existing employees to work longer before gaining the confidence to take on new staff. The initial jobs figures have to be treated with caution as they are imprecise and prone to revisions.