White House economist Austan Goolsbee said on Friday the February jobs report showed President Barack Obama's policies were working to improve the economy, but he said more needed to be done to create jobs.

We will continue to work with Congress to find ways to reduce spending, but not at the expense of derailing progress in the job market, Goolsbee said in a statement.

The Labor Department report released on Friday showed that U.S. employers hired more workers in February than in any month since May last year and the unemployment rate dipped to 8.9 last month, a near two-year low.

(Reporting by Jeff Mason and Matt Spetalnick)

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