Big US jobs gain in January surprises again

Job creation in the US surged in January, as the economy continued to defy predictions of a slowdown.

Employers added 353,000 jobs and average hourly pay jumped, while the unemployment rate held steady at 3.7%, the Labor Department said.

Healthcare and retail firms were among the businesses driving the gains.

The report extends a streak of job gains that has surprised economists, who have expected a jump in interest rates since 2022 to slow the economy.

The US central bank started raising rates two years ago, expecting higher borrowing costs to chill economic activity and ease pressures pushing up prices.

While price inflation has eased, the economy has proven resilient.

"The US employment data provided a shock, beating expectations by miles, with earnings much higher than expected as well," said Neil Birrell from Premier Miton Investors.

"These numbers show the US economy to be strong and will sway anyone thinking a March rate cut was on the way to look further out. Any thoughts of recession are off the mark as well for now."