Jobs growth surges in US despite slowdown fears

Jobs growth surged in the US in January, defying expectations of a slowdown.

Employers added 517,000 jobs last month, the Labor Department said. That was far more than expected, pushing down the unemployment rate to 3.4%.

Analysts are struggling to figure out what is happening in the world's largest economy, which is being buffeted by a mix of higher borrowing costs and rising prices.

But the labour market has held up.

The job gains in January were widespread, led by bars and restaurants, which are continuing to recover from the losses sparked by the pandemic.

Car manufacturers and tech and media firms were among the few industries to report job losses.