February jobs rose a surprisingly strong 678,000, unemployment edged lower while wages were flat

Job growth accelerated in February, posting its biggest monthly gain since July as the employment picture got closer to its pre-pandemic self.

Nonfarm payrolls for the month grew by 678,000 and the unemployment rate was 3.8%, the Labor Department’s Bureau of Labor Statistics reported Friday.

That compared to estimates of 440,000 for payrolls and 3.9% for the jobless rate.

In a sign that inflation could be cooling, wages barely rose for the month, up just 1 cent an hour or 0.03%, compared to estimates for a 0.5% gain. The year-over-year increase was 5.13%, well below the 5.8% Dow Jones estimate as more lower-wage workers were hired and 12-month comparisons helped mute more recent gains.