Under Biden: The US economy added 678,000 jobs in February, exceeding economists' expectations.

 The US economy added 678,000 jobs in February, exceeding economists' expectations.

It was the best month for job growth since July. The nation has 2.1 million jobs to go before hitting the February 2020 level and recouping all positions lost in the pandemic, the Bureau of Labor Statistics reported Friday.

Once again, the consensus prediction for the report -- 400,000 jobs -- missed the mark. Erratic swings in the labor market from one month to another have made forecasters' jobs much harder during the pandemic.

The unemployment rate edged down to 3.8%, also better than expected, representing a new pandemic-era low.

The leisure and hospitality sector, which was hit hardest by Covid-related layoffs, once again added the most jobs back, at 179,000. The industry needs another 1.5 million jobs in order to reach its pre-pandemic level. Most of the positions added in February were created at restaurants and bars as Americans ventured out more to socialize once the Omicron surge subsided.

Professional services, health care and construction also recorded strong job gains.

Wages, inflation and the Fed

Wages were flat in February, after a period of robust wage growth as employers tried to compete for talent and retain existing staff amid the ongoing labor shortage.

Average hourly earnings stood at $31.58 last month, just one cent higher than in January, breaking with the trend of recent months.

That's good news for those worried that rising wages will boost already high inflation further, perhaps including the Federal Reserve.

Friday's strong report, including a new Covid-era low for the unemployment rate, mean the Fed's anticipated interest rate increase later this month is rock solid.

The central bank, which is tasked with achieving maximum employment and price stability, has been challenged with rapidly rising inflation during the pandemic. On Wednesday, Fed Chairman Jerome Powell said a quarter-percentage-point rate hike was likely at the bank's March policy meeting in less than two weeks' time.

This is a developing story. It will be updated

The-CNN-Wire

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