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The nation's economy added 151,000 jobs in February, according to data from the Bureau of Labor Statistics released on Friday, Mar. 7. That number was lower than the Dow Jones consensus forecast of 170,000, CNBC reported.
Job growth lagged behind the 12-month average of 168,000, signaling a labor market slowdown. Healthcare led with 52,000 new positions, followed by financial activities (+21,000), transportation and warehousing (+18,000), and social assistance (+11,000).
Federal government employment declined by 10,000, mainly due to the Trump administration's gutting of agencies. That effort has been led by billionaire Elon Musk, who's the de facto head of the Department of Government Efficiency.
Many DOGE layoffs also happened after the BLS survey reporting period. Those job cuts likely won't be counted until the March labor market report.
The labor force participation rate slipped to its lowest level since January 2023 at 62.4 percent. Discouraged workers and those working part-time for economic reasons – a broad indicator of unemployment – rose to eight percent, the highest level since October 2021.
Wage growth stood at 4.0 percent in February, slightly below the forecast of 4.2 percent. Average hourly wages met expectations with a 0.3-percent increase.
The labor market's slowdown comes as costs of everyday items rise and trade tensions escalate. President Donald Trump placed a one-month pause on some tariffs against Canada and Mexico on Thursday, Mar. 6, reversing a move he made just two days earlier.
The lower employment numbers were released one day after outplacement firm Challenger, Gray & Christmas said US employers announced 172,017 layoffs in February. That's the highest monthly total since the height of the COVID-19 pandemic in July 2020.
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Private employers added just 77,000 jobs in February, ADP said on Wednesday, Mar. 5. That number marks the smallest private sector growth since July 2024.
The BLS also revised employment figures for December 2024, increasing by 16,000 to 323,000 jobs. January's figures were lowered by 18,000 to 125,000, reinforcing concerns that hiring has slowed considerably from the stronger growth seen toward the end of 2024.
After the jobs report's release, the Dow Jones Industrial Average opened for trading down 1,397.42 points from the start of the week, while the S&P 500 was on pace for its worst week since September 2024.
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