March 6, 2020, 10:29 a.m. EST
U.S. economy adds strong 273,000 jobs in February, but coronavirus looms as threat to hiring
Unemployment rate falls back to 50-year low of 3.5%
Dow Jones Industrial Average (DJIA)
S&P 500 Index (SPX)
By Jeffry Bartash, MarketWatch
Americans are still trying to figure out a work-around, literally, for doing their jobs amid a coronavirus oubreak.
The numbers: The U.S. in February added a surprisingly robust 273,000 new jobs for the second month in a row, but the threat to the global economy from the coronavirus could act as a brake on hiring in the months ahead.
An acceleration in hiring in the past two months nudged the unemployment rate down to 3.5% from 3.6%, matching a 50-year low.
The increase in new jobs easily surpassed the 165,000 forecast of economists surveyed by MarketWatch. Hiring was strongest among health-care providers, restaurants, construction companies and government.
The U.S. stock market fell sharply again in Friday trades despite the strong jobs report owing to persistent worries about the global coronavirus epidemic. Stocks have gyrated wildly in the past few weeks, sinking one day and surging the next as investors try to assess the economic fallout from the disease.
Related: New U.S. jobless claims still very low. No coronavirus layoffs visible yet
What the February employment report shows is that the U.S. economy was in very good shape before the coronavirus began to take a toll. So far the damage has been limited, but it could grow in the months ahead until the virus is contained.
Read: Coronavirus update: 97,841 cases, 3,347 deaths, airline stocks tumble
What happened: Health-care providers led the way in hiring by adding 57,000 jobs. The industry has been one of the fastest growing for years in large part due to an aging population.
Restaurants and bars filled 53,000 positions and government employment rose by 45,000, including 7,000 temporary Census workers. The federal government is expected to add up to 500,000 temporary workers for the 2020 Census and hiring is already underway.
Construction companies boosted employment by 42,000 in January to mark the second straight big increase. Unseasonably warm weather and rising demand for housing have given the industry a big lift.
Low and still falling interest rates are stoking demand, but it remains to be seen if buyers are scared off by the coronavirus.
Manufacturers also added 15,000 jobs.
Employment fell slightly among retailers and transportation companies.
The amount of money the average worker earns rose 9 cents to $28.52 an hour last month.