Strong U.S. employment report brightens economic outlook

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"The July jobs report was everything you could have asked for and more. Provided the strength in jobs is confirmed with other economic data, the Fed will have sufficient reason to hike (rates) this year," said Michelle Meyer, a senior economist at Bank of America Merrill Lynch in New York.

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Amid the cooling of ties with the West, Erdogan is due to meet Russian President Vladimir Putin on Tuesday in St Petersburg for talks intended to end a period of tension after Turkey downed a Russian fighter jet near the Syrian border last November.

But a broad measure of unemployment that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment rose one-tenth of a percentage point to 9.

Mining shed a further 7,000 jobs in July. Construction payrolls rose 14,000 following three consecutive months of declines. Manufacturing sector employment increased by 9,000 jobs in July after adding 15,000 positions in June.

Nonfarm payrolls rose by 255,000 jobs after an upwardly revised 292,000 surge in June, with hiring broadly based across the sectors of the economy, the Labor Department said on Friday. In addition, 18,000 more jobs were created in May and June than previously reported.

The average workweek increased by 0. 3 percent increase in average hourly earnings left the year-on-year gain at 2. 5 hours in July, the most since January. With both hours and hourly earnings rising, workers' take-home pay shot up 0.

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