Job creation exceeded expectations in February and showed that the US labor market remains strong, even as the unemployment rate rises.
Total non-agricultural employment increased by 275,000 for the month while the unemployment rate rose to 3.9%. Economists polled by Dow Jones had previously expected payroll growth of 198,000, a step slower than the downgraded increase of 229,000 in January. The increase in December was also revised downwards to 290,000 from 333,000.
The unemployment level increased even though the labor participation rate was maintained at 62.5%.
Average wage earnings, which are closely watched as an indicator of inflation, showed a slight increase less than expected for the month and slower than a year ago. Wages rose just 0.1% in the month, one-tenth of a percent below expectations, and up 4.3% from a year ago. It was below the 4.5% increase in January and slightly below expectations of 4.4%.
Markets showed little reaction, with futures markets related to major averages flat. However, the yield on government savings is much lower. The US dollar index which measures the US dollar against six major currencies traded down 0.36% to a trading level of 102.404.
