U.S. added 236K jobs in February; unemployment dips

WASHINGTON U.S. employers ramped up hiring in February, adding 236,000 jobs and pushing the unemployment rate down to 7.7 percent from 7.9 percent in January. Stronger hiring shows businesses are confident about the economy, despite higher taxes and government spending cuts.

The government's February employment report released Friday was filled with mostly encouraging details. The unemployment rate is now at its lowest level in four years. Hiring has averaged more than 200,000 per month since November. Wages increased. And the job gains were broad-based, led by the best construction hiring in six years.

One negative detail: Employers added fewer jobs in January than first estimated. Job gains were lowered to 119,000 from an initially reported 157,000. Still, December hiring was a little better than first thought, with 219,000 jobs added instead of 196,000.

The unemployment rate had been stuck at 7.8 percent or above since September. About half the decline in February occurred because more of the unemployed found jobs. A decline in the number of people looking for work accounted for the other half. People who aren't looking for jobs aren't counted as unemployed.

Strong auto sales and a steady housing recovery are spurring more hiring, which could lead to stronger economic growth. The construction industry added 48,000 in February and 151,000 since September. Manufacturing has gained 14,000 last month and 39,000 since November.

So far, higher gas prices and a Jan. 1 increase in Social Security taxes haven't caused Americans to cut back on big-ticket purchases.

Across-the-board government spending cuts also kicked in March 1 after the White House and Congress failed to reach a deal to avoid them. Those cuts will likely lead to furloughs and layoffs in coming weeks.

The impact of the tax hikes is partly being offset by higher pay: Hourly wages rose 4 cents to $23.82 last month. Wages are up 2.1 percent in the past year, which is ahead of inflation for the fourth straight month.

A big source of strength has also been home sales and residential construction: New-home sales jumped 16 percent in January to the highest level since July 2008. And builders started work on the most homes last year since 2008.

Home prices rose by the most in more than six years in the 12 months that ended in January. Higher prices tend to make homeowners feel wealthier and more likely to spend.

Editor's note: This Associated Press article was posted minutes after the Labor Department released the February employment report. It has since been replaced by a staff-written report. You can find the latest report and reader comments here.

[stevex47]

Let's go back to the birther way of losing 800,000 jobs per month and a home foreclosure epidemic, ohh, and let's start some wars somewhere and waste thousands of innocent lives.

[zmonkee]

are you still trying to bring up Bush? 5 years and trillions of dollars later?

[rlj44]

I still don't have a job. What about salary levels in these new jobs. Things aren't the way they used to be, thanks to the president being hell-bent on socialism. How about a background check on our president?

[Lindag20]

So lets go back to losing thousands of jobs every month and the Dow dropping like a rock. Will that make you happy?

[chrisbrushett]

You don't have a job because you're unemployable. Your incompetence has nothing to do with our President.

[oldoc44]

To really get a sense for this data report, we'd need to know a lot more about just who is still "unemployed". Likely the unemployment rolls are largely people with out of date skills and needed credentials and perhaps work records that are sub-par or other employability issues. Corporate America has seized the opportunuity to streamline and thin out their work force and that's also why the market and profits are doing so very well...less dead & outdated wood on their payrolls! No room/$ to carry those marginal employees and problem cases any longer.

[zmonkee]

But wasn't that number NEVER even supposed to get to 8 after all that money was spent on the stimulus?

[dj_chi]

Uh, no. That was the GOP talking point but not what was ever said. It was about what would happen to the unemployment number, relative to where it was headed at the time, if the stimulus was not passed.

[zmonkee]

nope-- obo said it wouldn't go above 8 if his stimulus got passed-- of course...that was before it went to 10-

[shurch4truth]

Amazing what American ingenuity can accomplish despite overwhelming efforts by the Republican party to fight all efforts to improve the economy and curtail employment improvements simply to made this president look bad.

amazing

[taxed01]

Unemployment down, food stamps up. Makes sense to the democrats.

[shurch4truth]

it changing and that's a good thing. Big businesses are sitting on billions($) so hopefully they will see the signs and start hiring

[Wondering53]

I would like to know how many of these jobs are decent wage-paying positions and how many are simply minimum wage service jobs.

[dj_chi]

According to the various GOP politicians who brag about job creation in their state, minimum wage jobs ARE decent wage-paying positions.

[shurch4truth]

Somebody has to do those jobs

Who do you want to do them? What?! not aliens? Then it has to be Americans.

Can't have your cake and eat too.

[royalstar05]

And here come the republican excuses in 1,2,3. Nice job Obama admin.

[zmonkee]

nice job?? I guess 7.7 is the new norm? What kind of job will he be doing when that number rises at the end of March?

[shurch4truth]

z.....it's very hard for some people to witness success by this president and as George W so often said "I understand that"