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• Professional and business services added 95,000 jobs
• The labor-force participation rate rises to 62.3% last month
The United States job growth increases in February, and the unemployment rate edges down indicating a strong labor market as the economy recovers from the Omicron variant and prepares for higher interest rates.
The Labor Department reported that the U.S. economy added 678,000 jobs and the unemployment rate was 3.8% in February.
Leisure and hospitality, including restaurants and bars, led the job gains with 179,000, a sign of strength after the pandemic hit them hardest. Professional and business services added 95,000; retail, 37,000; transportation and warehousing, 48,000.
Unemployment decreases
The industry's unemployment rate fell to 6.6 %, down 1.6 % points from January and closer to the 5.7 % recorded in February 2020 but wages fell by 2 cents per hour to $19.35 per hour.
The surge in cases due to the Omicron variant added to the labor shortage as workers called in sick. In January, about 3.6 million Americans were employed but absent from work due to illness.
Despite this, job growth remained high, thanks in part to businesses' quick salary increases to entice people back into the workforce. Some employees have returned to the labor market in recent months, bringing labor-force participation closer to pre-pandemic levels.
The labor-force participation rate, or the share of the population working or seeking a job, rose to 62.3% last month.
On Wednesday, Federal Reserve Chairman Jerome Powell said interest rate rises are expected to begin this month in a congressional hearing.
Powel signaled that the central bank would favor a 25-basis-point rise rather than a larger 50-basis-point increase, when the Fed meets for its two-day meeting on March 16.
Picture Credits: BBC