U.S. job creation surged in February and the unemployment rate held steady at an eight-year low, the government reported Friday in the clearest sign yet of labor-market strength that could further ease fears the economy was moving toward recession. The Labor Department said employers added a strong 242,000 workers in February while the unemployment rate held at a low 4.9 percent even as more people entered the labor market. It also revised upward its January and December job-growth figures by a combined 30,000. In February, job gains were broad-based, though mining and manufacturing employment fell. The massive service sector—which accounts for 90 percent of U.S. jobs—created 245,000 positions last month after adding 153,000 in January. Retailers added almost 55,000 jobs, restaurants added 40,000, and the healthcare sector added 38,000. Construction payrolls increased 19,000, and government added 12,000 jobs. Mining lost a further 18,000 jobs in February after cutting 9,000 the previous month. Mining payrolls have declined by 171,000 jobs since peaking in September 2014, with three-quarters of the losses in support activities, like oilfield services. Manufacturing employment lost 16,000 jobs, reversing some of January's surprise increase. Over the past three months, employers have added an average of 228,000 each month, demonstrating the economy has successfully handled a global slowdown and financial-market turmoil. Combined with data such as consumer and business spending, the employment report suggested the economy had regained momentum after growth slowed to a 1 percent annual rate in the fourth quarter. Growth estimates for the January-March period are around a 2.5 percent rate. Fears of a recession following poor December economic reports and slowing growth in China sparked a global stock-market plunge at the beginning of the year.
