U.S. Jobless Rate Unexpectedly Drops to Two-Year Low in March

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The unemployment rate in the U.S. unexpectedly fell to a two-year low of 8.8 percent in March as employers created more jobs than forecast, adding to evidence the labor-market recovery is gaining traction.

Payrolls rose by 216,000 workers last month after a 194,000 gain the prior month, the Labor Department said yesterday in Washington. Economists projected a March increase of 190,000, according to the median estimate in a Bloomberg News survey. A separate report showed manufacturing expanded at close to the fastest pace in seven years.