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U.S. employers added 275,000 jobs to the economy in February, exceeding the average monthly gain of 230,000 jobs over the past 12 months, the federal Bureau of Labor Statistics reported on Friday. 

The unemployment rate also ticked up 0.2 percentage point to 3.9% in February. Twelve months ago, the jobless rate was 3.6%. February was the 25th consecutive month with unemployment under 4% – the longest streak since the late 1960s when the nation went 27 straight months with a jobless rate under 4%.  

In February, job gains occurred in healthcare (+67,000), in government (+52,000), in food services and drinking places (+42,000), in social assistance (+24,000) and in transportation and warehousing (+20,000). However, the transportation and warehousing industry remains down by 144,000 jobs since reaching its peak in July 2022. 

Hiring continued to trend up in February in the construction industry (+23,000), which was in line with the average monthly gain of 18,000 over the prior 12 months. Over the month, heavy and civil engineering construction added 13,000 jobs. 

Manufacturing lost 4,000 jobs during February after gaining 8,000 jobs in January and 12,000 jobs in December. 

The labor force participation rate – the percentage of working age people who had jobs or were actively looking for work – was 62.5% in February for the third consecutive month. The employment-population ratio showing only the percentage of the working age population who had jobs was little changed at 60.1%.  

In February, average hourly earnings for all employees on private nonfarm payrolls edged up by 5 cents to $34.57, following an increase of 18 cents in January. Average hourly earnings were up by 0.1% in February and 4.3% compared to a year ago. 

In February’s report the BLS also revised its employment numbers from the previous two months. January’s preliminary numbers were revised downward from 353,000 to 229,000. December’s preliminary numbers were also revised downward from 333,000 to 290,000. 

Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors. 

Stocks rose after the release of the latest Employment Situation report, as many investors viewed slower wage growth, the rise in unemployment, and the downward revision (-167,000) of the blockbuster hiring numbers for January and December as signs the economy may be cooling enough to spur the Federal Reserve Board to finally start lowering interest rates.