US jobs growth jumps in December

The US economy created many more jobs than expected in December, according to the latest government data.

Employers added 312,000 jobs, far ahead of predictions of 177,000, the Labor Department said.

The unemployment rate nudged higher to 3.9%, but is still near historic lows. Average hourly pay increased at an annual rate of 3.2% - an improvement on the previous month's figure of 3.1%.

The dollar shot higher after the numbers were released.

The main US share indexes, which had tumbled on Thursday, also opened higher.

Analysts said the employment surge shows the US economy remains healthy - despite fears of a slowdown that have battered the stock market in recent months.

Paul Ashworth, chief US economist at Capital Economics, said the gains "make [a] mockery of recession fears ".

"This employment report suggests the US economy still has considerable forward momentum," he said.

Overall, payrolls rose by 2.6 million last year, compared to 2.2 million in 2017, as tax cuts and increased government spending helped to boost the economy.

The robust labour market has encouraged more people to look for work - one reason for the uptick in the unemployment rate in December.

After years of relatively stagnant wages, it is also starting to force employers to pay more.

Average hourly pay has increased more than 3.1% year-on-year for the last three months - the strongest streak since 2009.

US President Donald Trump celebrated the news on Twitter.