US jobs growth exceeds expectations and eases market fears

US jobs growth increased at a higher rate than expected in December according to the latest data, as employers hired the most workers for 10 months and wages also rose.

The increase of 312,000 jobs to the economy last month exceeded economists' expectations of 177,000, according to Reuters. 

The average hourly wage also rose by 3.2 per cent, its highest increase since 2009. 

The data was welcomed by Wall Street, which had been in a downward spiral since the end of last year over concerns the Federal Reserve would continue to raise rates with the economy slowing. 

The Dow Jones was up 2 per cent, the S&P rose 1.85 per cent and the Nasdaq climbed 2.37 per cent in early trading.

"The jump in payrolls in December would seem to make a mockery of market fears of an impending recession," Paul Ashworth, chief economist at Capital Economics in Toronto, told Reuters.

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

There had been concerns the economy was set for a sharp slowdown following surveys that indicated a steep decline in consumer confidence and activity last month.