The U.S. economy added 151,000 jobs in February, showing continued growth amid mixed signals that point to potential challenges ahead.
At a Glance
- U.S. job growth increased to 151,000 in February, up from 125,000 in January
- Unemployment rate ticked up slightly to 4.1 percent
- Healthcare sector led job creation with 52,000 new positions
- Full-time employment fell by 1.22 million while part-time jobs increased by 610,000
- Federal government cut 10,000 jobs despite overall government employment rising
Job Growth Continues While Unemployment Edges Up
The U.S. labor market demonstrated resilience in February with the addition of 151,000 jobs, surpassing January’s gain of 125,000 positions. This positive momentum comes as the unemployment rate edged up slightly to 4.1 percent, indicating some softening in labor market conditions. Notably, the healthcare sector emerged as the primary driver of employment gains, contributing 52,000 new jobs to the economy. Several other sectors also posted gains, including financial activities, transportation, and warehousing, helping to offset losses in other areas.
While total job creation remained solid, a concerning shift occurred in employment quality metrics. Full-time employment decreased by 1.22 million positions, while part-time employment increased by 610,000 jobs. Additionally, the labor force participation rate fell to 62.4 percent, suggesting some workers are exiting the job market entirely. The number of Americans working multiple jobs also increased by 96,000 to reach 8.86 million, potentially indicating economic pressure on households.
BREAKING: The US economy adds 151,000 jobs in February, below expectations of 159,000.
The unemployment rate RISES to 4.1%, above expectations of 4.0%.
January's jobs report was also revised lower by -18,000 jobs.
DOGE job cuts and economic uncertainty are ramping up.
— The Kobeissi Letter (@KobeissiLetter) March 7, 2025
Government Employment Shows Divergent Trends
Government employment presented a mixed picture in February’s jobs report. While overall government payrolls increased by 11,000 positions, federal employment specifically contracted by 10,000 jobs. This reduction in federal workforce aligns with recent government efficiency initiatives that aim to reduce bureaucracy and streamline operations. State and local government entities added positions to offset these losses. Upcoming employment reports may reflect larger impacts from government-related job cuts, with projections suggesting between 250,000 and 500,000 positions could be affected over a six-month period.
The retail sector continued to face challenges, losing 6,000 jobs in February as traditional brick-and-mortar establishments adjust to changing consumer preferences and increased competition from online retailers. Manufacturing employment also contracted, highlighting ongoing difficulties in American industrial sectors despite targeted policy efforts to reinvigorate domestic production. Services sectors, by contrast, showed more resilience and continued to expand their workforce.
🚨🇺🇸U.S. ADDS 151K JOBS—BUT UNEMPLOYMENT RISES TO 4.1%
The U.S. economy gained 151,000 jobs last month, up from 125,000 in January, but unemployment ticked up to 4.1%.
Despite high interest rates and shifting economic policies, hiring remains steady, though slower than the… https://t.co/giDsw5URc7 pic.twitter.com/Q4UCyFNxVC
— Mario Nawfal (@MarioNawfal) March 7, 2025
Economic Indicators Show Mixed Signals
Worker wages maintained growth, with average hourly earnings increasing by 0.3 percent to $35.93, representing a 4 percent rise over the past year. This wage growth continues to outpace inflation, potentially bolstering consumer purchasing power. However, the significant increase in planned layoffs, which rose 245 percent from January, signals potential volatility in the months ahead. Initial jobless claims decreased by 21,000 to 221,000, offering some positive news for workers currently in the job market.
Financial markets reacted with relative calm to the employment data. Stock markets showed little change following the report’s release, while U.S. Treasury yields continued their decline. The U.S. Dollar Index fell further, registering a significant weekly loss of approximately 3.5 percent. Of particular note, employment statistics showed U.S.-born workers increased by 284,000, while the number of foreign-born workers decreased by 84,000, reflecting shifting demographic patterns in the workforce.
Consumer sentiment surveys reveal weakening optimism about future employment prospects, a potential early warning sign of changing labor market conditions. With mixed signals across various economic indicators, analysts continue to monitor whether February’s job report represents a temporary adjustment or the beginning of a more significant shift in the American labor market.
Trump has time to get this perfect, but so far, it looks good.
