The American economy added 313,000 jobs in February, crushing expectations, while the unemployment rate remained at 4.1%, according to a U.S. Labor Department report Friday that could help quell inflation fears.
Economists had been expecting non-farm payroll growth of 200,000 and the unemployment rate to decline one-10th of a percent to 4%. An increase in the labour force participation rate helped keep the headline unemployment number steady, as the number of those counted as not in the workforce tumbled by 653,000 to just over 95 million.
A separate measure that takes into account those out of the workforce and the underemployed — sometimes referred to as the "real" unemployment rate — held steady at 8.2%.
Construction jobs led the way, with 61,000 new positions, followed by retail and professional and business services (50,000 apiece), manufacturing (31,000) and financial activities (28,000). Health-care added 19,000 while mining saw 9,000 new jobs.
Investors were watching the report closely not only for clues about job growth but also whether wage pressures were continuing to build. Wage growth came in less than expected, rising 0.1% for the month and 2.6% on an annualized basis.
The average work week rose by 0.1 hours to 34.5 hours.
