Data for January was revised up and showed the creation of 481,000 jobs, instead of the 467,000 previously reported.
Economists polled by Reuters had forecast a payroll increase of 400,000. Estimates ranged from 200,000 to 730,000 jobs.
Labor market conditions tightened further, with the unemployment rate falling to 3.8%, the lowest since February 2020 and down from 4% in January. The decline occurred despite more people entering the workforce.
Federal Reserve (Fed) Chairman Jerome Powell this week described the labor market as “extremely tight” and told lawmakers he would support a 25 basis point interest rate hike at the March 15 monetary policy meeting. March 16, and that it would be “prepared to act more aggressively” if US inflation does not decline as fast as expected.
Oil prices have risen above $100 a barrel since Russia launched a war against Ukraine last week, prompting a barrage of sanctions against Moscow from the United States and its allies.
“There’s a lot of worrying news in the world right now, from the conflict between Russia and Ukraine to skyrocketing inflation,” said Sam Bullard, senior economist at Wells Fargo in Charlotte, North Carolina. “But the US jobs recovery remains a bright spot amid the carnage.”
Economists expect as many as seven interest rate hikes this year in the United States.
