Increase of 295,000 Job Opportunities in February and Decline in Unemployment Rate in the U.S.

American employers added 295,000 job opportunities in February, marking the latest indicator of the strengthening U.S. economy, surpassing other major global economies. February marks the twelfth consecutive month that job creation in the U.S. has exceeded 200,000 opportunities. According to the Associated Press, the U.S. Department of Labor reported on Friday, March 6, that the unemployment rate decreased from 5.7% to 5.5%. However, the reason for this decline is that some unemployed individuals have exited the job-seeking list and are no longer considered unemployed. The increase in job creation in February did not impact wage improvements. The average hourly wage rose by three cents to $24.78. The average hourly wage has only increased by two percent over the past twelve months, slightly above the inflation rate. During this period, over 3.3 million Americans have found jobs. The increase in employment, along with a decrease in gas prices, has led many consumers to spend more than before, which in turn has boosted the economy and accelerated economic cycles abroad, strengthening employers' confidence in hiring more workers. Jim O'Sullivan, a senior U.S. economic analyst at the consulting firm High Frequency Economics, stated that the increase in job creation is 'another sign of the rapid recovery of the labor market. The level of job creation will continue to keep the unemployment rate on a downward trend.' He added that the decrease in the unemployment rate 'increases the likelihood of accelerating wage growth.' The U.S. Federal Reserve stated that the 5.5% unemployment rate is consistent with a healthy economy. Analysts say this trend may encourage the Federal Reserve to raise interest rates by early June. The current interest rate in the U.S. is at its lowest level. Following the release of employment and unemployment statistics on Friday, March 6, Paul Dales, an economist at Capital Economics, noted, 'This is a symbolic change that encourages the Federal Reserve to raise interest rates in June.' The Associated Press further states that the improvement in the U.S. labor market and economy is clearly more pronounced than in other major global economies. While signs of economic growth in Japan and Europe are clearer than last year, their economies remain weak. The unemployment rate in the Eurozone is on a downward trend, but the 11.2% unemployment rate is nearly double that of the U.S. Many economic analysts have assessed that U.S. economic growth in the current quarter is on a slow but upward trend compared to the annual rate of 2.5% to 3%. However, these analysts are optimistic about the job creation trend. While it seems that consumers are saving financial gains from lower gas prices, January saw an increase in household spending. Mark Zandi, a senior economist at Moody's Analytics, predicts that the U.S. economy will grow by three percent this year, an unprecedented figure in the past decade. This economic growth is suitable for employers' confidence to create 250,000 job opportunities in a month.