The US unemployment rate dropped below 5 per cent last month and wage growth accelerated despite slower hiring, suggesting America’s jobs market is holding its ground in the face of mounting concern about the health of the world economy.
Employers added 151,000 jobs in January, a weaker reading than economists had expected, but enough to pull the jobless rate down to 4.9 per cent, the lowest reading since February 2008.
Wages rose much more rapidly than expected, with average hourly earnings increasing by 12 cents, bringing the year-on-year gain to 2.5 per cent.
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