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US jobs recovery continued last month

Manufacturing leads February US jobs growth
Manufacturing leads February US jobs growth

Official figures show that US employment grew solidly for a third month in a row in February, in a sign that the country's economic recovery is broadening.

Employers added 227,000 jobs last month, the Labor Department said, while the unemployment rate held at a three-year low of 8.3%.

It marked the first time since early 2011 that employment has grown by more than 200,000 for three months in a row.

The US economy also created 61,000 more jobs in December and January than previously thought, and the jobless rate held steady even as more people returned to the labour force.

Although the job market is gaining some muscle, the pace of improvement remains too slow to do much to absorb the 23.5 million Americans who are either out of work or underemployed.

Fed Chairman Bernanke last week described the labour market as "far from normal" and said continued improvement would require stronger demand for US goods and services.

The jobs report, which sets the tone for financial markets worldwide, added to the list of data highlighting the US economy's underlying strength. It also provided a hopeful sign for the global recovery at a time that growth is slowing in China and the euro zone appears to be sliding into recession.

The labour force participation rate - the percentage of working-age Americans either with a job or looking for one - rose to 63.9% from 63.7% in January.

The separate survey of households that is used to measure the jobless rate showed even brisker hiring in February.

While some parts of the jobs market have benefited from unseasonably warm winter weather, economists say a genuine improvement is under way, even though they expect a slight pull back in March.

Private companies again accounted for all the job gains in February, adding 233,000 positions. Government employment fell a modest 6,000, declining for a sixth consecutive month.

Manufacturing, which in January recorded the largest gain in a year, dominated job creation in February, hiring 31,000 new workers. The sturdy job gains reflect stepped up auto production.

Most auto companies are taking on new workers and adding shifts and overtime to meet pent-up demand after production was disrupted early last year following the tsunami and earthquake in Japan.

Outside manufacturing, construction payrolls fell 13,000, the first decline in four months. Although hiring has quickened, the economy faces persistent long-term unemployment. In February, about 43% of the 12.8 million unemployed Americans had been out of work for more than six months.

US trade gap hits a three-year high

Separate figures showed that the US trade deficit surged to the widest deficit in more than three years in January as imports hit an all-time high, reflecting big demand for foreign-made cars, computers and food products.

US exports to Europe fell, raising concerns that the debt crisis in that region could dampen US economic growth.

The Commerce Department said the January trade deficit widened to $52.6 billion, the biggest gap since October 2008. Imports rose 2.1% to a record $233.4 billion. Exports were up a smaller 1.4% to $180.8 billion. Exports to Europe fell 7.5%.

Economists expect the deficit this year to widen from last year's $560 billion, reflecting in part the economic woes in Europe, which represents about 20% of the US export market.