There were 93,688,000 Americans not participating in the labor force in February, a decline of 374,000 individuals from the previous month, according to data from the Bureau of Labor Statistics released Friday. The employment component for the ISM manufacturing index jumped to 48.5 percent up 2.6 percentage points over January, although the employment component of the non-manufacturing index fell to 49.7 percent from 52.1 percent. Last month, average hourly earnings were 2.5 percent higher than they were a year prior. However, she also said that adding 200,000 jobs a month would be necessary to lure back new workers who have dropped out.

A separate report showed that the USA trade deficit worsened in January, when exports were at their lowest level in more than five years. The dollar slipped against a basket of currencies on concerns about wage growth.

On Friday, March 4, the USA government issues the February jobs report. Over the past year, wages have risen just 2.2 percent, "well below the 3- to 4-percent wage growth we typically see in normal times", Andrew Chamberlain, chief economist at Glassdoor, said in his assessment.

However, traders of futures linked to the Fed's benchmark policy rate are thinking longer term. "A June rate hike is coming". Average hourly wages had been growing at a 2.5 percent rate heading into Friday's report.

The positives contained in the employment summary for February has analysts predicting that the Fed is on track to raise short-term interest rates in the summer. Growth in wages - which would also push up inflation - should accelerate as the labour market settles into full employment.

A separate unemployment gauge that includes those not actively looking for a job or at work part-time for economic reasons fell to 9.7 percent, the lowest reading since May 2008.

January's figures were revised to a increase of 172,000 from an earlier estimate of 151,000. After an increase in wages in January, there was a slight dip in February.

159-a-15-(Stuart Hoffman, chief economist, PNC Financial, in AP interview)-"to that yet"-Economist Stuart Hoffman says it's unlikely that today's report will prompt the Fed to change interest rates when it meets later this month".

On the homebuilding front, construction jobs rose by 19,000 last month. "We had 18,328 more people working in January than in December and 92,649 more than in January of past year".

The Post's John Crudele predicted on Thursday that the February jobs number would come in above the 195,000 total Wall Street was predicting because of the generous seasonal adjustments the Labor Department sprinkled into its survey. And manufacturing has added just 12,000 jobs over that time.

Retailers added 54,900 jobs last month.