US jobs growth slows but economy remains on track

US employment increased less than expected in December but a rebound in wages pointed to sustained labour market momentum that sets up the country’s economy for stronger growth and further interest rate increases from the Federal Reserve this year.

Non-farm payrolls rose by 156,000 jobs last month, the US Labor Department said yesterday.

The gains, however, are more than sufficient to absorb new entrants into the workforce. Fed chair Janet Yellen has said the economy needs to create just under 100,000 jobs a month to keep up with growth in the work-age population.