U.S. job growth accelerated in February, pushing the unemployment rate to a two-year low of 3.8% and raising optimism that the economy could withstand mounting headwinds from geopolitical tensions, inflation and tighter monetary policy.

The Labor Department's closely watched employment report on Friday also showed the economy created 92,000 more jobs than initially estimated in December and January. It suggested that the labor market was moving past the COVID-19 pandemic and that the economy has weaned itself off government money. …

Leisure and hospitality payrolls increased by 179,000 jobs. Employment at restaurants and bars shot up 124,000, while hotels and motels added 28,000 workers. Employment in the professional and business services industry increased by 95,000 jobs.

Retailers added 37,000 jobs. Manufacturing payrolls increased by 36,000 jobs, while construction employment rose by 60,000. Government employment increased by 24,000 jobs. …

The unemployment rate dropped two-tenths of a percentage point to 3.8% last month, the lowest level since February 2020. The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one, increased to 62.3%, the highest level since March 2020, from 62.2% in January.

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