Funny Numbers Underpin Jobs Report

A second straight drop in the unemployment rate was described as a statistical anomaly Friday, albeit not one that completely mischaracterizes economic reality.

"It probably did overstate reality a bit, but even if you adjust for the seasonal factors, it's obvious the labor market is improving," said Josh Feinman, chief economist at Deutsche Asset Management.

The U.S. unemployment rate unexpectedly dipped to 5.5% in February as the economy added 66,000 jobs. It was the first gain in nonfarm payrolls since July and the strongest gain in a year. Payrolls fell by 126,000 in January and 106,000 in December. ...