US Economy Loses 92,000 Jobs in February; Unemployment Rate Rises to 4.4%

The United States economy lost 92,000 jobs in February, according to data released by the U.S. Department of Labor. The fall in nonfarm payrolls was unexpected and marked the sixth monthly decline since January 2025. 

January Payroll Data Revised Lower 

In January, payrolls had increased by a revised 126,000 jobs, compared with an earlier estimate of 130,000. The February outcome contrasts with expectations that employment would continue to grow modestly. 

The figures come from the monthly employment report published by the Bureau of Labor Statistics, one of the most closely tracked indicators of the country’s economic activity. 

Unemployment Rate Edges Higher 

The unemployment rate rose to 4.4% in February, up from 4.3% in January. The increase followed a drop in household employment, which declined by 185,000 during the month. 

Labour force participation also moved lower. The participation rate fell to 62.0%, the lowest level since December 2021. 

Revisions linked to updated population estimates from the U.S. Census Bureau indicated slower growth in both the population and labour force, partly reflecting weaker net immigration. 

Job Losses Across Several Industries 

Employment declines were recorded in multiple sectors during the month. The healthcare sector lost 28,000 jobs, following strong hiring earlier in the year. 

Within healthcare, employment at physicians’ offices fell by 37,000 positions, partly showing a strike involving about 31,000 healthcare workers at Kaiser Permanente. The labour action in California and Hawaii has since ended. 

Other sectors also saw reductions. Leisure and hospitality payrolls fell by 27,000, while construction employment declined by 11,000.  

Job losses were also reported in transportation and warehousing, professional and business services, and manufacturing, where employment dropped by 12,000. 

Weather and Policy Backdrop 

Severe winter weather affected activity in parts of the country during February. Data showed 228,000 workers reported missing work due to bad weather, compared with 218,000 in January. 

At the same time, trade policy uncertainty has continued following tariff measures introduced by the administration of Donald Trump. Some tariffs were struck down by the U.S. Supreme Court, after which new global tariffs of 10%, later increased to 15%, were introduced. 

Wages Continue to Rise 

Despite the decline in employment, wages increased during the month. Average hourly earnings rose 0.4% in February, matching the pace recorded in January. 

Over the 12 months through February, wages increased 3.8%, slightly higher than the 3.7% annual rise reported in January. 

Read More: Oracle Weighs Layoffs as AI Data Centre Investment Climbs! 

Conclusion 

The February employment report indicates weaker hiring after a period of modest job growth. Payroll declines were recorded across several industries, while the unemployment rate and labour force participation moved in opposite directions. Wage growth, however, remained steady during the month. 

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