WASHINGTON: US private payrolls increased by the most in nearly two years in December, suggesting sustained strength in the labour market despite ongoing financial market volatility.

While other data on Thursday showed the number of Americans filing applications for unemployment benefits increased more than expected last week, the underlying trend in claims remained low. Claims data tends to be volatile around year-end holidays.

Labour market data is being closely watched for signs of whether tightening financial conditions could be impacting on companies’ hiring decisions. A sharp stock market sell-off has stoked fears about the economy’s health.

Published in Dawn, January 4th, 2019