257,000 added to nonfarm payrolls in January

U.S. job growth rose solidly in January and wages rebounded strongly, a show of underlying strength in the economy that puts a midyear interest rate increase from the Federal Reserve back on the table.

Nonfarm payrolls increased 257,000 last month, the Labor Department said on Friday. Data for November and December was revised to show a whopping 147,000 more jobs created than previously reported, bolstering views consumers will have enough muscle to carry the economy through rough seas.

'By any measure this was an extremely good report. This report continues to add evidence that the consumer has the potential to continue to move along at this very constructive pace,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.

At 423,000, November's payroll gains were the largest since May 2010, when employment was boosted by government hiring for the population count.

While the unemployment rate rose one-tenth of a percentage point to 5.7 percent, that was because the labor force increased, a sign of confidence in the jobs market.

January marked the 11th straight month of job gains above 200,000, the longest streak since 1994. Economists polled by Reuters had forecast hiring increasing 234,000 last month and the unemployment rate holding steady at 5.6 percent.

The continued improvement in the labor market comes despite the economy slowing. Sputtering growth overseas and lower oil prices have weighed on exports and business investment.

Wages increased 12 cents last month after falling five cents in December. That took the year-on-year gain to 2.2 percent, the largest since August.

The Fed last week ramped up its assessment of the labor market. Brisk job gains and the improvement in wages could harden expectations of a June policy tightening.