American jobs boost

THE US economy unexpectedly added 528,000 jobs last month, despite tighter monetary policy and waning fiscal support, easing fears of a recession.

The unemployment rate edged down to 3.5pc from 3.6pc, showing an acceleration in the pace of job creation compared to June, when the economy added 398,000 jobs. Economists had expected job growth to slow to 250,000 in July.

The data released by the US labour department will allay concerns of a downturn in the world’s largest economy, just months before mid-term elections that will determine control of Congress, and after GDP data last week showed the second consecutive quarterly contraction in output.