Despite unfavorable weather, U.S. nonfarm payrolls increased by a better-than-expected 243,000 in February, the Labor Department said Friday The jobless rate ticked back up to 4.8% in February, from a five-year low of 4.7% in January. The number of unemployed people rose by 153,000 to 7.2 million "The economy is still growing at an above trend pace and with slack in labor and product markets all but fully absorbed, inflation pressures will begin to gradually build this year," said Stephen Stanley, chief economist for RBS Greenwich Capital The 243,000 increase in payrolls was above the 206,000 expected by economists surveyed by MarketWatch. Economists say the labor market is fundamentally sound. Payroll growth in December and January was revised lower by a total of 18,000. January's gain was cut from 193,000 to 170,000. The labor force participation rate rose to 66.1%, the highest yet in this business cycle The hiring in February had to overcome a shift from a very warm January to a more normal February. The month also saw a heavy snowstorm on the East Coast at the beginning of the week that the government surveys households and businesses for the jobs report Average hourly earnings increased by 5 cents, or 0.3%, in February to $16.47. Hourly earnings are up 3.5% in the past year, the fastest growth since 9/11 "With average hourly earnings suggesting that wage pressures are rising, this report will keep the Fed on the offensive against inflation pressures," said Drew Matus, an economist for Lehman Bros The Federal Reserve is expected to raise its overnight interest-rate target to 4.75% on March 28. Fed officials are concerned that increased "resource utilization," especially in the labor market, could set off a spiral of wage and price increases. The Fed is expected to raise rates again in May, although officials are careful to not commit so far ahead, saying everything depends upon the incoming economic data. "The wage story is gathering real momentum," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. "The Fed is going to 5%, and more if housing does not collapse by mid-year." The average workweek fell to 33.7 hours in February from 33.8 hours, likely the result of the weather. Total hours worked in the economy fell by 0.1% Payrolls have increased by 2.05 million in the past year, an average monthly growth of 171,000. The economy requires about 125,000 to 150,000 new jobs a month to stay even with population growth In February, payroll growth was widespread across the economy. Of 278 industries, 60.3% were adding jobs in January Goods-producing industries added 45,000 jobs, including a surprising gain of 41,000 in construction. Manufacturing firms cut 1,000 jobs, the first decline since September. Among 84 manufacturing industries, 46.4% were hiring in February The manufacturing average workweek rose by a tenth of an hour to 41 hours, with 4.6 hours of overtime. Total hours worked in manufacturing increased 0.2% Service-producing industries added 198,000 jobs, including 47,000 in education and health services and 39,000 in professional and business services. Retail added 7,000 jobs