The U.S. economy posted strong job gains overall in February thanks to outsized increases in the business services, construction, health-care and hospitality industries as well as an unusual surge in government hiring.

The Labor Department reported Friday that payrolls increased by 273,000, smashing the 175,000 estimate that economists polled by Dow Jones had expected. The unemployment rate fell to 3.5%, equaling its lowest level in more than a half-century.