US businesses created a respectable 311,000 new jobs in February, lower than the huge increase in January but still enough to keep pressure on the Federal Reserve to raise interest rates to combat inflation.

The unemployment rate climbed to 3.6% from a 53-year low of 3.4%, as more Individuals started seeking work, and not all of them found US jobs, per a report from Politico.

The US government's Friday data showed that many firms are still hiring in the nation's employment market. If signals of a strong economy and rising inflation remain, the Fed will likely increase rate hikes, per Fed Chair Jerome Powell.

Businesses boost compensation in a healthy US job market and pass on their higher labor expenses to consumers by raising pricing.

Although the government reported an unexpected surge in employment in January (517,000 new jobs), that number was reduced to 504,000 in Friday's report, as per a PBS report.

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Higher Salary: OK for US Workers But Not for the Fed

In January, consumers spent more, reflecting a stronger economy. The Fed's preferred inflation indicator also advanced.

February's hiring rate is still triple the Fed's ideal.

Gains in US jobs of roughly 100,000 per month would be sufficient to maintain the pace of population growth and avoid an increase in the unemployment rate, according to a report from News 12 Brooklyn.

With such a low number, businesses wouldn't have to pay as much to attract and retain employees.

Increased salary is welcome for US workers, of course. However, the Fed contends that it is a factor in rising prices, especially in sectors where labor is a major factor, such as the hospitality industry.

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