DHAKA: The US economy added 242,000 jobs in February, far better than the 190,000 expected by economists.

The Labor Department numbers underlined the strength of the US economy and may allow the Federal Reserve to gradually raise interest rates this year, reports the BBC.

Another 30,000 jobs were also added to the previous estimates for December and January.

The unemployment rate was unchanged from January at 4.9% - an eight-year low.

Luke Bartholomew, investment manager at Aberdeen Asset Management, said, ‘This should scotch suggestions that the US is about to tip into recession. It's yet more evidence that the labor market is in good shape, although wage growth was more disappointing’.

The year-on-year growth in average hourly earnings slowed to 2.2% last month from 2.5% in January.

Last week, official figures indicated that the US economy expanded at an annualized pace of 1% in the quarter, compared with an initial estimate of 0.7%.

The strong jobs market and improved growth outlook, together with signs that inflation is creeping up, could prompt the Fed to raise rates in the summer.

It did so in December for the first time in nearly a decade - a decision that had been criticized by some for holding back the economic recovery.

BDST: 1215 HRS, MAR 05, 2016
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