-Paul Dales, senior US economist at Capital Economics
US employers created more jobs than expected in February, while America's unemployment rate fell, reinforcing the view of a strengthening labour market that should encourage the Fed to raise interest rates this year. US non-farm payrolls rose by a seasonally adjusted 295,000 in February, according to the Labor Department. January's figure was downwardly revised to show 235,000 new jobs were added in the measured period. Yet, the headline figure celebrated its 13th month in a row above the 200,000 threshold. The US jobless rate ticked down to 5.5% from 5.7%, marking the lowest level since before the recession. The labour force participation rate fell slightly to 62.8% from 62.9%, and remained in a narrow 62.7% to 62.9% range since last April. Moreover, in February average hourly earnings climbed by 3 cents to $24.78, following a 12 cent jump in January, the biggest monthly advance since November 2008. On an annual basis, hourly wage growth rate is now 2% higher.
A separate report showed that January's trade deficit narrowed thanks to a decline in crude oil import prices. The nominal trade shortfall narrowed to $41.8 billion in January, following a revised $45.6 billion gap for December. Exports declined 2.9% to $189.4 billion, while imports plunged 3.9% to $231.2 billion.
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