US jobs market flexes muscle as Feb payrolls soar

Washington - US employers stepped up hiring in February and the jobless rate fell to its lowest level since the spring before President Barack Obama took office, which could put pressure on the Federal Reserve to raise interest rates in June.

Non-farm payrolls increased 295 000 last month after rising 239 000 in January, the labour department said on Friday. The broad job gains came despite disruptive winter weather that took hold across large parts of the country in mid-February.

The unemployment rate dropped two-tenths of a percentage point to 5.5%, the lowest since May 2008, slipping into territory that some Fed officials consider consistent with full employment.