Job growth smashes expectations for February as unemployment falls back to 3.5%

Nonfarm payrolls grew far more than expected in February as companies continued to hire leading into a growing coronavirus scare.

The Labor Department reported Friday that the U.S. economy added 273,000 new jobs during the month, while the unemployment rate was 3.5%, matching its lowest level in more than 50 years. An alternative measure of joblessness that counts those not looking for work and holding part-time jobs for economic reasons edged higher to 7%.

The January and February gains tied for best month since May 2018. 

Economists surveyed by Dow Jones had been looking for payroll growth of 175,000 and a 3.5% jobless level. Average hourly earnings grew by 3% over the past year, in line with estimates, while the average work week, considered a key measure of productivity, nudged up to 34.4 hours.