US Jobless Rate Falls But Pay Growth Static

The US jobless rate has fallen to its lowest level since April 2008 but pay growth was static at 2%, according to the latest official employment figures.

The unemployment rate of 5.3%, down from 5.5% the previous month, was better than analysts had expected but the number of net new jobs created in the economy came in below estimates at 223,000.

The wage figure was seen as crucial in helping determine the possible timing of a rise in interest rates.

The Federal Reserve, which has indicated that borrowing is on course to rise later this year , had identified wages as a key factor behind its thinking.

The Labour Department said average hourly earnings remained at $24.95 in June.

The fact there was no upward movement was likely to disappoint hawks demanding a rise in rates sooner rather than later.

The Labour Department also revised down job creation numbers for the previous two months during its update, which was brought forward by a day to take account of the 4 July holiday.

The fall in the jobless rate was mostly explained by the labour force shrinking by 432,000 people in the month.