US employers extended a healthy streak of hiring in February by adding 295,000 jobs, the 12th straight monthly gain above 200,000.
It was the latest sign that the US economy is further strengthening and outpacing other major economies around the world.
The unemployment rate fell to 5.5 per cent from 5.7 per cent, the government said today. But the rate declined mainly because some people out of work stopped looking for jobs and were no longer counted as unemployed.
February's robust job gain wasn't enough to boost wages by much. The average hourly wage rose just 3 cents to USD 24.78 an hour. Average hourly pay has now risen just 2 per cent over the past 12 months, barely ahead of inflation.
Still, over that time, 3.3 million more Americans have gotten jobs. More jobs and lower gas prices have led many consumers to step up spending. That's boosting the economy, offsetting sluggish economies overseas and giving employers the confidence to hire.
Today's figures provide "more evidence that the labor market is recovering rapidly, with employment growth more than strong enough to keep the unemployment rate trending down," said Jim O'Sullivan, chief US economist at High Frequency Economics. Falling unemployment "makes more acceleration in wages increasingly likely."
At 5.5 per cent, the unemployment rate has now reached the top of the range the Federal Reserve has said is consistent with a healthy economy. That could make it more likely that the Fed will act soon to raise interest rates from record lows as early as June.
"This is quite a symbolic change that increases the pressure on the Fed to hike rates in June," said Paul Dales, an economist at Capital Economics said.
Indeed, after the jobs report was released Friday morning, investors sold ultra-safe US Treasurys, a sign that many anticipate a Fed rate hike. The yield on the 10-year Treasury note rose to 2.2 per cent from 2.11 per cent before the report was issued.
Investors also sold stocks. The Dow Jones industrial average dropped 64 points in morning trading.
Last month's hiring was broad-based. Some of the industries with the biggest job gains include mostly low-paid work: Hotels and restaurants added 60,000 jobs, and retailers gained 32,000.
But higher-paying fields also added jobs: Professional and business services, which include accountants, engineers and lawyers, gained 51,000, construction 29,000 and financial services 10,000.
