US Job numbers surge, +242k in February

The U.S. economy gained 242,000 jobs in February while average wages dropped slightly, according to a Bureau of Labor Statistics report released Friday.

For total nonfarm employment, the U.S. added 242,000 jobs in February.

The government said 172,000 new jobs were created in January instead of 151,000.

"With these revisions, employment gains both for December and January combined were 30,000 more than previously reported".

The labor force participation rate significantly rose 0.2 point to 62.9 percent, after having slumped as low as 62.4 percent last September.

Average hourly earnings dropped by 0.1% from the prior month, the first decline since December 2014 the Labour Department's figures showed. The college-level unemployment rate can serve as a proxy for professional employment.

Unemployment rates remained far higher for minorities: black and Hispanic Americans were jobless at rates of 8.8% and 5.4%, compared to 4.3% for whites. But wages fell by 0.1 percent from the month before, an unexpected bit of softening after a strong January for wages. "We'll need to see more gains in higher-skilled areas such as I.T. and business services for long-term growth".

There is a risk, however, that payroll gains could come in below expectations after a survey on Thursday showed employment in the services sector fell in February for the first time in two years.

The figure is still historically low, but now has risen for three straight months.

"It's clear that labor market conditions are still strong", said Paul Ashworth, chief US economist at Capital Economics.

"The employment data should reinforce that the recession debate is premature and overdone, and could strengthen the case for the Fed not waiting too long", said Ryan Sweet, senior economist at Moody's Analytics in Westchester, Pennsylvania. While that probably isn't enough to prompt the central bank to raise interest rates this month, it could bolster the case for moving at its meetings in April or June. For example, almost 9,000 jobs disappeared from the retail sector as stores sent home holiday workers.

The new data underscored the resilience in the United States economy amid worries that it was beginning to stall early this year, though analysts still expect growth to ease in the coming months. But over the past three months, the economy has added jobs at about the same pace as it did in 2015.

The unemployment rate, which is calculated from a different survey, was unchanged at 4.9%, the Labor Department said Friday.

"Health care and social assistance added 57,000 jobs in February", the report continued.

And although Fed officials will be heartened by the return of solid job growth, the news on wages probably will give them pause, Hoffman said. Weakness overseas, especially in China, and a strong dollar have clobbered factory exports while low oil prices have dampened energy investment and related production.