In January, the US unemployment rate fell to 9 percent from 9.4 percent in December 2010.

Unemployment is now at its lowest point since April 2009. It has been falling steadily for three months, down from 9.8 percent in November, marking the sharpest three-month decline since 1983.

The 8.3 million people who lost jobs or finished temporary jobs, continued a downward trend in February and has fallen by 1.2 million over the past 12 months.

Last month, the total number of unemployed Americans dipped to 13.7 million, still almost double what it was before the recession.

In February, employment rose in manufacturing, professional and business services, education and health care, however, retailers and state and local governments cut jobs.

The manufacturing sector, which is considered an engine of the economic recovery, added 33,000 jobs in February. Almost all of the gain occurred in durable goods industries, including machinery and fabricated metal products.

Construction employment also grew by 33,000 in February, following a decline of 22,000 in January that may have reflected the severe winter weather.

Employment in the service sector, health care, transportation and warehousing also continued to rise in February.

Recent data shows that the U.S. economic recovery is gaining momentum.

According to the latest government data, the U.S. economy grew at 2.8 percent in the fourth quarter of 2010 and the entire year, the most it has since 2005.

A Federal Reserve survey released Wednesday noted that "labor markets improved modestly across the country."

However, economists believe that the recovery of the labour market remains a lingering challenge.

Fed Chairman Ben Bernanke said recently that "until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established."