The economy added 192,000 jobs in February, up from 63,000 in January. The unemployment rate dropped to 8.9%, falling below 9% for the first time in almost two years. Economists say that they expect the economy to continue adding jobs in the coming months, and they also say that the unemployment rate may rise again as people re-enter the job market. Manufacturing, construction and the service sector added the most jobs in February, with state and local governments laying off workers. Local governments have lost 377,000 jobs since 2008. While federal employment was steady, economists say that will change depending on the budget that passes. Economists have also warned that sever budget cuts could hurt the economy's recovery.
See "Spurred by Private Hiring, Job Growth Gathers Steam", Catherine Rampell, The New York Times, March 3, 2011