The U.S. economy added an encouraging 175,000 jobs in February, according to preliminary data from the U.S. Department of Labor, but the official unemployment rate ticked up slightly to 6.7%. It was 6.6% the previous month.
The report was expected to confirm suspicions that the nation’s severe winter weather, with record snowfall and bitter cold, had dampened the economy. Instead, the report shows signs of economic resiliency, exceeding several forecasts and providing the first sign that the economy isn’t faltering after two disappointing months of employment data and a downward revision, from 3.2% to 2.4%, in fourth quarter gross domestic product.
Economists polled by Dow Jones Newswires had forecast a gain of 152,000 new nonfarm jobs in February.
One sign that the numbers might be better than expected was a drop in the number of weekly initial unemployment claims, which fell by 26,000 for the week ending March 1. The number stood at 323,000 that week, with a four-week moving average of 336,500.
The Department of Labor’s preliminary report said employers added 113,000 jobs in January and 75,000 in December, but those numbers were revised upward to 129,000 new jobs in January and 84,000 new jobs in December.
As a benchmark, economists say the economy must create at least 150,000 new jobs each month just to keep up with changes in population and the labor market, and it must create about 250,000 to quickly bring down the unemployment rate.
While official unemployment rose slightly, the government’s “U-6” rate, a broader measure of unemployment that includes part-time workers who want full-time employment, dropped from 12.7% in January to 12.6% in February. The measure stood at 14.3% in February of 2013.
