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U.S. Job Growth Tops Expectations

Jobs south of the border surged more in number than expected in January as construction firms and retailers accelerated hiring, which likely gives the Trump administration a head start as it seeks to boost the American economy and employment.

Figures released Friday by the U.S. Labor Department revealed non-farm payrolls increased by 227,000 jobs last month, the largest gain in four months. But the unemployment rate rose one-10th of a percentage point to 4.8% and wages increased modestly, suggesting that there was still some slack in the labour market.

Revisions to November and December showed the economy created 39,000 fewer jobs than previously reported. Still, the labour market continues to tighten, which could soon spur a faster pace of wage growth. Federal Reserve officials view the labour market as being at or near full employment.

Economists had forecast payrolls rising 175,000 last month and the unemployment rate unchanged at 4.7%.

President Donald Trump vowed during last year's election campaign to deliver 4% annual gross domestic product growth, largely on the back of a plan to cut taxes, reduce regulations, increase infrastructure spending and renegotiate trade deals in the United States' favour.