275,000 jobs added to US economy, unemployment rate drops to 3.9%

275,000 jobs added to US economy, unemployment rate drops to 3.9%

In February, the US economy added more new jobs than expected, with 275,000 nonfarm payroll jobs created, exceeding economists’ expectations of 200,000 new jobs. However, the unemployment rate increased to 3.9% from 3.7% in January. Additionally, downward revisions to job growth in prior months suggested some softening in the US labor market.

A revised 229,000 jobs were added in January, down from the initially reported 353,000. Wages increased by 0.1% on a monthly basis and 4.3% over the previous year, meeting economists’ expectations of a 0.2% increase monthly and a 4.3% increase annually.

The labor force participation rate remained flat at 62.5%, while the average weekly hours worked increased from 34.1 to 34.3. The largest job increases in February were seen in healthcare, which added 67,000 jobs, and government employment, which added 52,000 jobs.

Federal Reserve Chair Jerome Powell described the labor market as “relatively tight” during his recent testimony on Capitol Hill. Markets are predicting the first Fed interest rate cut to come in June, with investors expecting three to four rate cuts throughout the year.

Overall, the jobs report provides important data for the Federal Reserve to consider when making its next interest rate decision. Stay updated with the latest stock market news and analysis by following Josh Schafer on Twitter @_joshschafer and visiting Yahoo Finance’s website for financial and business news.

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