U.S. employers added 262,000 jobs to U.S. non-farm payrolls in February, the U.S. Labor Department said today, the best rate of hiring in four months.

However, the unemployment rate rose to 5.4%.as discouraged workers revived their search for new jobs.

The Labor Department also revised December’s payroll reading to an increase of 155,000 jobs from the earlier 133,000 jobs, leaving a net gain of 8,000 jobs for the December-January period.

Wall Street was cheered by the report. The Dow Jones Industrial average jumped 90 points in the first hour of trading.

According to the report, the manufacturing sector boosted payrolls by 20,000 jobs in February. Meanwhile, the service sector added 207,000 jobs in February, with a 30,000 gain in retail jobs.

Separately, U.S. factory orders rose moderately in January, amid strong business spending, weakness in demand for big-ticket durable goods and a surge in inventories. Total factory orders increased just 0.2%, following a revised 0.5% advance in December, the Commerce Department said today. December orders were originally estimated to have risen 0.3%.

As well, the University of Michigan’s report on consumer sentiment for February was moved to 94.1 in its final estimate, versus 95.5 in January. February sentiment had originally been reported at a reading of 94.2. Economists had expected to see the index to move to 94.3.

The current conditions index hit 109.2, from January’s 110.9, while the expectations index was 84.4, from 85.7 the month before.