US jobs increase beats July estimates
US employment increased more than expected in July and wages picked up, bolstering expectations of an acceleration in economic growth and raising the probability of a Federal Reserve interest rate hike this year.
Non-farm payrolls rose by 255,000 jobs after an upwardly revised 292,000 surge in June, with hiring broadly based across sectors of the economy, the Labor Department said yesterday.
The unemployment rate was unchanged at 4.9pc as more people entered the labour market. Highlighting job market strength, average hourly earnings increased a healthy eight cents and workers put in more hours.
In addition, 18,000 more jobs were created in May and June than previously reported.
"It looks like a pretty strong report overall," said Doug Duncan, chief economist at Fannie Mae in Washington. "It shows the economy from a labour perspective is heading in the direction that the Fed wants. It gives the Fed some support for those looking for an increase in rates by the end of the year."
The dollar jumped against the euro and the yen after the data, while US government debt fell as traders ramped up bets on an eventual rate hike. U.S. stocks opened higher, with the S&P 500 index hitting a record intraday high. (Reuters)