WASHINGTON - The US economy generated 262,000 new jobs in February, a sharp increase from a revised 132,000 in January, the Labor Department said Friday.
The payrolls report, a key to sustaining economic growth, was much better than the 225,000 new jobs predicted, on average, by private economists.
But a separate survey showed the jobless rate increased to 5.4 percent from 5.2 percent. The apparent contradiction is explained by an increase in the number of active job seekers.
The report also showed average hourly earnings were unchanged at 15.90 dollars.
Payrolls have increased an average of 183,000 in the past three months.
Manufacturing industries added 20,000 new jobs in February, with much of the gain coming from auto workers returning from temporary layoffs, the government said.
Construction industries added 30,000 jobs. Service producing jobs grew by 207,000, with the bulk of the new jobs coming in professional and business services.
The report should give more confidence to Federal Reserve officials that the economy is on a self-sustaining expansion.
Because experts say the economy needs to create about 150,000 new jobs each month to absorb new labor market entrants, the report should bolster the outlook for the world's largest economy.
Fed officials have been sounding more confident about the economy in recent weeks. The Federal Open Market Committee meets again on monetary policy on March 22. Economists expect gradual rate hikes to continue.
03/04/2005 13:47 GMT