U.S. Economy Sheds 308,000 Jobs; Unemployment Rises to 5.8% in Feb.

Non-farm payrolls declined by 308,000 jobs in February, helping to push the unemployment rate up to 5.8%, the Labor Department said Friday.

Companies said that sluggish demand for goods and the threat of war are forcing them to put off investing and filling positions, contributing to the increased unemployment rate, Bloomberg reported.

In January, the unemployment rate was 5.7%, Labor said. During that month, payroll grew by 143,000.

The report on non-farm payrolls was a surprise to economists, Bloomberg reported, who had expected the figure to rise by 10,000. The unemployment rate, which is determined by a separate survey, was expected to rise to 5.8%.

Manufacturing payrolls, an indication of the health of the manufacturing sector, lost 53,000 jobs – the 31st month in a row that factory payrolls declined.

The average manufacturing workweek held steady at 40.8 hours and average amount of overtime worked rose to 4.2 hours from 4.1 hours in February.

Average hourly income rose 0.7%, or 11 cents, translating into an average weekly paycheck of $514.23 in February, up from the $513.47 a week in January.

U.S. workers put in an average of just 34.1 hours a week, down from 34.3 in January, the Labor Department said.