Non-farm payroll: The US created 209,000 new jobs in July

Emma Haslett
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The US non-farm payroll figure beat analyst expectations (Source: Getty)

The US created 209,000 new jobs last month, official figures published today showed.

The number was down from last month's surprisingly strong 222,000, but beat economists' expectations of 183,000.

Unemployment fell to 4.3 per cent, from 4.4 per cent last month. Average hourly earnings crept up by 0.3 per cent, from a rate of 0.2 per cent the year before.

The dollar rose off a 30-month low against the euro which it fell to after drama at the White House earlier this week, edging up 0.2 per cent to €0.8442. Having weakened against the pound in recent days, it rose 0.3 per cent to £0.7631.

The strong figure is likely to support the Federal Reserve's plans to raise interest rates.

"Sustained labour market strength will likely mean that the Federal Reserve remains on track to raise interest rates for a third time this year and announce a plan to start its balance sheet reduction plan, despite a recent ebb in inflation pressures," said Kully Samra, UK managing director at Charles Schwab.

"This healthy set of figures should bolster labour market buoyancy and goes some way to suggest that there is momentum in the economy to generate some inflation, even though price pressures still remain moderate.

"With US stocks drifting along near record highs, this latest jobs report bolsters our view that the US economy remains in robust shape as we continue in this long-term bull market.”

Read more: Trump chaos drives euro to new 30-month high against the US dollar

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