MNI BRIEF: US Feb Payrolls +678,000; Beats Expectations

U.S. employers added a hefty 678,000 jobs in February, the Department of Labor said Friday, more than the 420,000 expected by markets for a second straight month, and the unemployment rate dropped two-tenths to 3.8% as Omicron cases fell back.

The strong jobs report should reinforce the Fed's resolve to raise the fed funds rate this year. A study by St Louis Fed economist Max Dvorkin had pointed to a strong report in February, but the outcome surpassed even his estimate.

Average hourly earnings rose just a cent from January, less than expected. AHE is up 5.1% from a year earlier, after large increases in recent months. The average workweek rose a tenth to 34.7 hours. The labor force participation rate and employment-to-population ratio rose slightly to 62.3% and 59.9%, respectively.