U.S. Job Gains Accelerate While Wage Growth Slows Sharply

U.S. Job Gains Accelerate While Wage Growth Slows Sharply

U.S. hiring boomed in February while wage growth slowed, showing a strong labor market that likely keeps the Federal Reserve on track to raise interest rates this month while offering some respite from strong inflationary pressures.



Nonfarm payrolls increased 678,000 last month—the most since July—after upward revisions in the prior two months, a Labor Department report showed Friday. The advance was broad-based across sectors. The unemployment rate edged down to 3.8%, and average hourly earnings were little changed from the prior month.











The median estimate in a Bloomberg survey of economists called for a 423,000 advance in payrolls and for the unemployment rate to fall to 3.9%.



The employment report — the last the Fed will receive before its March 15-16 meeting — highlights a steadily improving, though extremely tight labor market. While declining Covid cases and looser restrictions likely helped boost hiring, employers are still scrambling to fill a near-record number of vacancies, making it tough to meet resilient demand by households and businesses alike.



Labor demand is likely to continue to exceed supply, limiting the pace of job growth and putting upward pressure on wages. Friday’s report showed average hourly earnings were