The US economy created 223,000 new jobs in May, despite Donald Trump’s concerns for steel and car manufacturing workers.

According to the country’s latest employment report, the unemployment rate fell 3.8 percent compared to the month previously and is at an 18 year low.

“The job numbers are very strong, widespread, or broad-based, that was an indication of strength from the report,” said Michael Arone of State Street Global Advisors.

“The really good news for markets is the average hourly earnings continues to be very steady and does not signal a buildup in inflationary pressures, so overall a very solid report.”

Wall Street analysts predicted the creation of 188,000 jobs in non-farm payroll.

Job gains were seen across all job sectors in the US. 25,000 were created in construction and 18,000 jobs were gained in manufacturing.

As well as the lower unemployment rate, the average hourly pay of private-sector workers increased by 2.7 percent in May, compared with 2.6 percent the month previously.

On Friday, the US government imposed tariffs on steel and aluminium imports from the European Union, Mexico and Canada due to “national security” threats they placed on the US industry.

Paul Ashworth of Capital Economics said: “Trade wars could be damaging but, in a relatively closed economy where exports account for only 12 per cent of GDP, things would have to get a lot worse for the White House’s protectionist sideshow to alter the interest rate outlook.”

Trump hinted at the positive news before the data was released, tweeting: “Looking forward to seeing the employment numbers at 8:30 this morning.”

It is the lowest unemployment rate seen in the US since 2000.

Michael Gapen, the chief United States economist at Barclays, has predicted rates to fall to as low as thee percent by the end of 2019 – the lowest rate since the economic boom post World War Two.