U.S. nonfarm payrolls increase more than expected in February

The U.S. Labor Department announced on Friday that nonfarm payrolls increased by 273,000 in February after an upwardly revised 273,000 gain in the prior month (originally an increase of 225,000).

According to the report, significant job gains in February occurred in health care and social assistance (+57,000 jobs), food services and drinking places (+53,000), government (+45,000), construction (+42,000), professional and technical services (+32,000), and financial activities (+26,000).

The unemployment rate decreased to 3.5 percent in February from 3.6 percent in the previous month.

Economists had forecast 175,000 new jobs and the jobless rate to stay at 3.6 percent.

The labor force participation rate remained at 63.4 percent in February, while hourly earnings for private-sector workers rose 0.3 percent m-o-m (+9 cents) to $28.52. Economists had forecast a 0.3 percent m-o-m advance in the average hourly earnings. Over the year, average hourly earnings have increased by 3.0 percent.

The average workweek rose by 0.1 hour to 34.4 hours in February. matching economists' forecast.