America's red-hot labor market added 275,000 jobs in February - slashing chances of an imminent interest rate cut

Some 275,000 jobs were added in the US in February as a hiring boom persists.

The number was almost 100,000 higher than economists expected and complicates the decision for the Federal Reserve as to when it will cut interest rates.

Unemployment rose by 0.2 percent to 3.9 percent, the US Bureau of Labor Statistics reported on Friday. While that is an increase, it is still generally the lowest it has been since the late 1960s.

Sectors that saw the most job growth were health care,  government, food services and drinking places, social assistance, and transportation and warehousing.

Roughly 100,000 jobs are needed per month to keep up with growth in the working age population.

Some 275,000 jobs were added in the US in February as a hiring boom persists

The more jobs that are added and the lower unemployment rate, the more hesitant the Fed will be to finally reduce record high benchmark interest rates.

More hiring means more money is circulating through the economy, making it harder to curtail inflation.

Despite a spate of layoffs at the start of the year, employers are generally holding on to their workers after struggling to find labor during the pandemic.

Though labor supply and demand are falling back into balance, some sectors of the economy remain desperate for skilled workers.

'Admittedly it was a close call, but unemployment has now remained below 4 percent for 25 straight months. That's the longest stretch since the late 1960s,' said Mark Hamrick, senior economic analyst at Bankrate.