US private payrolls surge in May, layoffs also jump

WASHINGTON: US private employers stepped up hiring in May, signalling that the labour market was rapidly tightening amid a firming economy, which could encourage the Federal Reserve to raise interest rates later this month.

While other data yesterday showed a jump in the number of Americans filing for unemployment benefits last week, the data was probably distorted by the Memorial Day holiday. Claims for eight states, including California, had to be estimated.