US Job Creation Surges, Unemployment Hits New Low

The United States had another giant month of job creation in April, with strong hiring in the vast services sector, and unemployment falling to a level not seen since 1969, the government reported on Friday.

The blockbuster report will help allay fears of a slowing economy and cheer President Donald Trump as he seeks re-election next year.

As the second quarter began, employers scooped up workers in construction, health care, computer systems design, administrative support and other service industries, adding a total of 263,000 net new positions for the month, the data showed.

That was well above the result economists expected, and worker pay continued to climb, according to the closely-watch report from the Department of Labor.

The jobless rate fell two tenths to 3.6 percent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force.

Government hiring also was the strongest in eight months, with 27,000 jobs created. Financial services also continued to add employees.

But hiring in the manufacturing sector was a weak spot for the third straight month, ending last year's long hiring streak. Durable goods employment was flat and the auto sector continuing to shed jobs.

In the 12 months prior to February, the manufacturing sector had added an average of 22,000 jobs a month, according to the report.

The retail sector also suffered yet more job losses, with 12,000 positions cut.

Hiring in mining, which includes oil and gas, as well as utilities was little changed, the data showed. (AFP)