The U.S. Labor Department released the labour market data on Friday. The U.S. economy added 242,000 jobs in February, exceeding expectations for a rise of 190,000 jobs, after a gain of 172,000 jobs in January. January's figure was revised up from a rise of 151,000 jobs.

The increase was driven by rises in health care and social assistance, retail trade, food services and drinking places, and private educational services.

The services sector added 245,000 jobs in February, while the manufacturing sector shed 16,000 jobs.

Construction added 19,000 in February, while mining sector shed 18,000 jobs.

The U.S. unemployment rate remained unchanged at 4.9% in February, the lowest level since February 2008, in line with expectations.

Average hourly earnings dropped 0.1% in February, missing forecasts of a 0.2% gain, after a 0.5% rise in January.

The labour-force participation rate increased to 62.9% in February from 62.7% in January.

A drop in wages could lead to a delay in further interest rate hikes by the Fed.