Markets surge as US unemployment hits three-year low

Equity markets are spiking after US non-farm payrolls data revealed the economy added 243,000 jobs last month – far above consensus expectations.

The Bureau of Labour Statistics said the unemployment rate fell from 8.5% to 8.3% in January, against expectations of no change.

The rate is the lowest seen since February 2009. The 243,000 jobs added - the highest number since April 2009 - was much hirer than consensus expectations of between 130,000 and 150,000.

The change in total nonfarm payroll employment for November was revised from +100,000 to +157,000, and the change for December was revised from +200,000 to +203,000.

“Job growth was widespread in the private sector, with large employment gains in professional and business services, leisure and hospitality, and manufacturing. government employment changed little over the month,” the BLS said.

The FTSE 100, which had previously been up 0.4% at 5,820, moved up to 5,871 on the news, putting the rise for the day at 1.3%. S&P 500 futures pointed to a 1% bounce at the open.