Jobs down, but so are unemployment claims

In the latest sign that the U.S. economy is headed for a recession, U.S. nonfarm payrolls shed 63,000 jobs in February — the second consecutive monthly decline, according to a Department of Labor report. The February decline was the largest since March 2003 and topped the revised 22,000 jobs that were lost in January. Despite the decline in payrolls, the unemployment rate fell unexpectedly to 4.8% in February from a 4.9% reading in January. Average hourly wages increased by 5 cents, or 0.3%, to $17.80 per hour. Average earnings rose 3.7% over the past 12 months, less than the inflation rate. The job losses were felt across many sectors, with manufacturing, construction and retailers bearing the brunt of the losses, losing 52,000, 39,000 and 34,000 jobs, respectively. The largest job gains were experienced in government, where 38,000 new jobs were added. The health and education and hospitality categories added 30,000 and 21,000 new posts, respectively.