The U.S. added 151,000 jobs in February and the unemployment rate rose to 4.1 percent in the first jobs report covering President Trump’s second term.
The monthly employment report, released Friday by the Labor Department, showed the job market holding steady amid rising economic concerns and slumping consumer confidence.
Most economists forecasts projected a solid gain of 150,000 jobs with a slight tick higher in the jobless rate for February. But experts were on guard for an unexpectedly bad report after weeks of sluggish economic data, mass federal layoffs and the impact of Trump’s new tariffs.
A significant spike in corporate layoffs reported by employment firm Challenger, Gray and Christmas stoked further concerns Thursday.
Several economists noted the loss of federal workers as a result of Trump administration staffing cuts had yet to show up in the labor data.
“The federal layoffs we’ve been hearing so much about will begin showing up in next month’s release,” Elizabeth Renter, economist at NerdWallet, wrote in a commentary.
Kevin Rinz, senior fellow and research adviser at the Washington Center for Equitable Growth, concurred, writing that “the degree to which layoffs at federal agencies and cuts to federal contracts have actually taken place so far is difficult to discern.”
“It is unlikely that effects on private sector employment will show up in this report,” he added.
January jobs numbers were revised down by 18,000 to 125,000 jobs added to the economy. December numbers, which are often subject to seasonal hiring factors, were revised up by 16,000 to 323,000 jobs.
The health care sector added 52,000 jobs, financial activities added 21,000 jobs, and transportation and warehousing added 18,000 jobs.
Economist reactions in general were mixed, with some focusing on the strong payrolls number and others detecting some weakening in the rise in the unemployment rate.
“The solid expansion in payrolls in February highlights that the negative impact of tariff hikes and policy uncertainty on economic activity at the macro level is not going to be felt for quite a while,” Fitch Ratings chief economist Brian Coulton wrote in a commentary.
Joe Gaffoglio, CEO Mutual of America Capital Management, was more pessimistic.
“The labor market is showing signs of weakness with hiring across sectors,” he wrote. “Deteriorating indicators like hiring intentions, new job listings and temporary staffing suggest a potential slowdown in employment growth.”
Wages grew by 0.3 percent on the month to an average of $35.93 per hour. They were up 4 percent on the year and 3.6 percent over the last three months.
A broader measure of unemployment known as the U-6 rate, which factors in part-time workers and people who are “marginally attached” to the labor force, popped up to 8 percent, its highest level since 2021.
Some warning signs have been flashing in the economy, including inflation that has risen back up to a 3-percent annual increase as well as a GDP prediction from the Atlanta Fed showing negative growth in the first fiscal quarter of 2025.
Consumer sentiment has also weakened and there’s been some pullback in spending.
Updated at 9:24 a.m. EST
