US labour market enjoys biggest gain in 17 years

The US labour market leaped forward in January, capping the greatest three-month jobs gain in 17 years and delivering the biggest wage increase since 2008.

Payrolls advanced by 257,000 last month following increases in December and November that were even bigger than previously reported, figures from the Labor Department showed in Washington. The unemployment rate rose to 5.7% from 5.6% as more than a million Americans streamed into the labour force seeking work.

The sustained employment gains are creating a virtuous cycle as Americans spend newfound incomes on goods and services.