Jobless rate declines to 4.5%

WASHINGTON -- The unemployment rate dropped to 4.5 percent, and workers got fatter paychecks in February, even as bad winter weather sent a bit of a chill through US job growth.

The latest employment picture, released by the Labor Department yesterday, suggested employers are holding up well and opportunities continue for job seekers as the economy deals with a sluggish spell, a housing slump, and troubles in the automotive industry.

Employers -- both private companies and the government -- added 97,000 jobs to their payrolls in February, the fewest in two years. Winter weather was blamed for much of the slower job growth.

Construction companies -- already feeling the strain of the ailing housing market -- slashed 62,000 jobs in February, the most in 16 years.

Meanwhile, factories, coping with slowing economic conditions at home and intense competition from abroad, continued to cut jobs. They eliminated 14,000 positions last month.

Those job losses, however, were eclipsed by employment gains elsewhere including at healthcare facilities, financial companies, computer-design firms, bars and restaurants, retailers, and the government.

"The job market remains relatively healthy. The weather certainly delivered a lashing to the job market in February, particularly in the construction business . . ." said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group. "Still, companies cautiously have the hiring mats out and workers are making more money."

The drop in the unemployment rate from 4.6 percent in January came as people left the workforce. Economists said bad weather made it difficult to get out and look for jobs.