US jobs data shows steady growth

The figures are enough to reinforce evidence of a healthier economy

The US economy created 146,000 new jobs in June, taking the unemployment rate down to a four-year low of 5%.

According to the Labor Department report, the increase was driven by jobs in professional and business services, healthcare, education and leisure.

However, the figure was less than the 195,000 predicted by analysts.

The health of the jobs market is vital for economic confidence, with consumer spending remaining the biggest influence on US growth.

May's non-farm payrolls figure was revised upwards to 104,000 from 78,000, helping reinforce evidence of a strengthening economy.

'Thriving' economy

US Treasury Secretary John Snow said the numbers "are a reminder that the American economy is thriving".

But not all economists agreed with him.

"The non-farm payroll report recorded yet another month of sub-par job growth that is consistent with our view that the US economy has switched into a lower gear," said David Rosenberg, economist at Merrill Lynch.

Job losses were concentrated in the automobile sector, which shed 18,000 jobs.

And manufacturing industries showed the lowest level of job creation since October 2003.

The unemployment rate fell to 5% in June, from 5.1% in May, its lowest level since September 2001.

Analysts said the latest figures were unlikely to have any impact on US interest rate policy.

The Federal Reserve next meets on 9 August. In June the Fed raised its key interest rate by a quarter point to 3.25% to temper inflation triggered by record oil price gains.