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WASHINGTON (AP) — Analysts say the February jobs report will increase pressure on the Federal Reserve to raise interest rates soon from their record-low levels.
The government says the jobless rate fell from 5.7 percent to 5.5 percent, as employers added 295,000 jobs. But the rate declined mainly because some people who were out of work stopped looking for jobs.
Over the past 12 months, 3.3 million more Americans have gotten jobs.
Economist Paul Dales at Capital Economics says the drop in the jobless rate to 5.5 percent is "quite a symbolic change" that will add to the pressure on the Fed to raise rates in June.
And after the jobs report was released, investors sold U.S. Treasurys, a sign that many anticipate a rate hike.
They also sold stocks. The Dow dropped 200 points before noon.
As for the months ahead, Jim O'Sullivan, an economist at High Frequency Economics, says today's numbers offer more evidence that the labor market is "recovering rapidly," and that growth is "more than strong enough to keep the unemployment rate trending down." He says that makes higher wages "increasingly likely."
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154-a-13-(Gus Faucher (foh-SHAY'), senior economist, PNC Financial Services Group, in AP interview)-"after the recession"-Economist Gus Faucher at PNC Financial says, with employers adding 295,000 jobs in February, hiring remains strong. (6 Mar 2015)
<<CUT *154 (03/06/15)££ 00:13 "after the recession"
155-a-13-(Gus Faucher (foh-SHAY'), senior economist, PNC Financial Services Group, in AP interview)-"the labor market"-Economist Gus Faucher at PNC Financial says the drop in the unemployment rate to 5.5 percent was not entirely positive. (6 Mar 2015)
<<CUT *155 (03/06/15)££ 00:13 "the labor market"
APPHOTO NYBZ116: In this Feb. 6, 2015 photo, U.S. Marine Corps Veteran Arlington Robertson, of Fort Lauderdale, left, hands his resume to an Internal Revenue Service Special Agent, at the annual Veterans Career and Resource Fair in Miami. The Labor Department releases employment data for February on Friday, March 6, 2015. (AP Photo/Alan Diaz) (6 Feb 2015)
<<APPHOTO NYBZ116 (02/06/15)££
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