The U.S. unemployment rate dipped to 8.9 percent in February, and nonfarm payroll employment rose by 192,000, reported the Labor Department on Friday.

In January, U.S. unemployment rate fell to 9 percent from 9.4 percent in December 2010. The unemployment rate is now at the lowest point since April 2009. It has been falling for three months, down from 9.8 percent in November, marking the sharpest three-month decline since 1983.

The number of job losers and persons who completed temporary jobs, at 8.3 million, continued to trend down in February and has fallen by 1.2 million over the past 12 month.

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

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

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 grow by 33,000 in February, following a decline of 22,000 in January that may have reflected severe winter weather.

Employment in the service-providing sector, health care, transportation and warehousing employment continued to expand in February.

Recent data showed 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 forth quarter in 2010. For all of 2010, the economy also grew 2.8 percent, the most since 2005.

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

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

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