US government figures show that the country's employers hired more workers in February than in any month since May last year, while the unemployment rate fell to a near two-year low. The figures raise hopes that the US economic recovery has gathered critical momentum. Employment increased by 192,000, the Labor Department said, above market expectations for 185,000 jobs. Data for December and January were revised to show 58,000 more jobs created than previously estimated.
The peak of monthly employment last May was when employment was being boosted by government hiring for a census. The unemployment rate dipped to 8.9%, the lowest since April 2009, from 9% in January as more people reported finding work.
February's bounce in employment after payrolls were depressed by extreme weather in January is unlikely to sway the Federal Reserve from its ultra-easy monetary policies.
The jobless rate has dropped 0.9 percentage point since November. The rate is derived from a survey of households, while the job creation figure comes from a separate survey of employers. The household survey showed more people were employed in February.
The unemployment rate is being closely watched by the Fed and could well determine the timing of the US central bank's first interest rate hike. The Fed, which meets on March 15, has held overnight lending rates near zero since December 2008.
Economists believe the Fed will want to see employment gains of more than 200,000 for at least six to nine months and a significant decline in unemployment before starting to withdraw its massive monetary support from the economy.