US President Joe Biden said July’s expectations-beating jobs report shows that his economic policies are working, and he urged Congress to advance legislation that would spend trillions of dollars on public works, education and other priorities.

“The Biden plan is working,” the president said at the White House yesterday. “The Biden plan is producing results. And the Biden plan is moving the country forward.”

US payrolls climbed by 943,000 in July according to the Labour Department, the biggest addition in nearly a year, exceeding the median estimate of an 870,000 gain in a Bloomberg survey of economists. The unemployment rate dropped by half a percentage point to 5.4pc, fueled by a surge in economic activity as more Americans were vaccinated against the coronavirus.

The rosy report – which also saw stronger-than-expected earnings and an upward revision of the June jobs figures – offers momentum to the White House as Mr Biden seeks to build congressional support for a $550bn (€470bn) bipartisan infrastructure bill, as well as a Democrat-only spending-and-tax package that could total as much as $3.5trn.

Senate efforts to rush a vote on the infrastructure plan were thwarted on Thursday amid disagreements over cryptocurrency reporting requirements and allowing state and local governments to reallocate coronavirus aid to public works projects.

The president has argued that the economic success of his early months in office was facilitated by his administration’s vaccination effort and the $1.9trn pandemic relief plan passed during his early days in office, and that additional federal spending is necessary to further those gains.

“We put in place the necessary tools early in my presidency,” he said, to “fight the virus and fight the economic mess we inherited”.

His policies, he said, will prevent the recent surge in Covid-19 cases from the Delta variant of the virus from “shutting down our schools, our businesses and our society”.

Republican detractors have argued that the federal spending is driving up inflation, and that trillions more is unnecessary considering robust economic growth. The Federal Reserve has pumped huge sums of money into the US economy and kept interest rates at zero.