February had Solid Gains Amid Economic Uncertainty.
The February labor market report signals a cooling job market amid federal layoffs, policy uncertainty and shifting economic conditions. While job gains remained positive, they were below economist expectations. The unemployment rate ticked up to 4.1%, driven by government job cuts, trade concerns and shifting employer hiring strategies. The labor market remains stable but under pressure, with future growth uncertain due to evolving economic policies.
The Numbers*:
The U.S. economy added 151,000 jobs in February, while job gains remained positive, they were below economist expectations of 170,000.
The unemployment rate increased slightly to 4.1%.
There were 8.2M open jobs well above January’s 7.6M.
The labor force participation rate decreased to 62.4%.
The number of job quits in the U.S. increased to 3.3 million.
- Average hourly earnings rose by 0.3% to $35.93.
- Average weekly hours worked were unchanged from January at 34.1 hours.
- Total hires were 5.3M, while total separations were 5.1M.
- Within separations, layoffs/discharges accounted for 1.5 million.
Industry Trends:
| Industry | February Jobs | Notes |
| Healthcare | + 52,000 | Hospitals, nursing and ambulatory care services led gains. |
| Financial Activities | + 21,000 | Strong hiring in real estate and insurance; commercial banking saw some job losses. |
| Transportation & Warehousing | + 18,000 | Couriers and air transportation led growth. |
| Social Assistance | + 11,000 | Down from the 12-month average of 21,000 jobs per month. |
| Manufacturing | + 10,000 | A recovery from recent months of decline. |
| Retail | - 6,000 | Continued struggles in consumer spending and store closures. |
The change in total payroll employment for December was revised up by 16,000, from +307,000 to +323,000, and the change for January was revised down by 18,000, from +143,000 to +125,000.
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* Above represents February 2025 Data
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