U.S. Job Growth Exceeds Expectations in February, Unemployment Ticks Up as More Rejoin Workforce
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The U.S. economy added 275,000 jobs in February, exceeding expectations, but the unemployment rate ticked up to 3.9% due to more people returning to the workforce.
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Adult women saw their unemployment rate rise slightly to 3.5%, while it fell for adult men to 3.3%. This was driven by more women rejoining the workforce.
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Wage growth accelerated at a slower pace of 4.3% annually, still outpacing inflation. This marks a return of real wage growth for workers after declines in 2021-2022.
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Job gains were widespread across sectors like healthcare, construction, transportation, and food services. However, hiring in December and January was revised down by 167,000 jobs.
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The strong job market suggests the Fed is nearing its goal of cooling the economy to fight inflation, raising confidence for potential rate cuts in 2024.