WASHINGTON - U.S. employment conditions proved to be resilient in the face of global crises in March as non-farm payrolls increased by 216,000 and the unemployment rate dropped to the lowest level in two years, the Labor Department reported Friday.
Private U.S. payrolls increased by 230,000 in March and February's private payrolls were revised higher by 18,000 to a 240,000 increase, the highest gain since March 2006. Total payrolls for January and February were revised higher with a combined increase of 7,000 jobs.
The unemployment rate dipped to 8.8%, the lowest level since March 2009, even as political turbulence in the Middle East combined with the nuclear crisis in Japan to flummox global markets in March.
Economists expected 188,000 total non-farm payrolls and 200,000 private payrolls, according to the median estimate from Thomson Reuters. They saw the unemployment rate staying steady at 8.9%.
Payrolls in the manufacturing sector increased for the fifth straight month, gaining 17,000 in March following a 32,000 increase in February.
Government employment was again the weak sector in March. Federal payroll employment edged higher by 1,000 as state employment was flat and local government employment fell by 15,000. Payrolls in the combined government sector have declined for five consecutive months.
Total payrolls increased by 478,000 in the first quarter of 2011 and increased by 416,000 in the fourth quarter of 2010.
Average hourly earnings for all workers was unchanged in March and the average workweek was also unchanged at 34.3 hours.
Economists expected average hourly earnings to increase 0.2% and for the workweek to be 34.3 hours, according to the median estimate.
