In February 2025, the U.S. economy added 151,000 jobs, falling short of economists' expectations of 170,000. This marks an increase from January's revised addition of 125,000 jobs. The unemployment rate edged up to 4.1% from the previous month's 4%.
Sectoral Performance
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Healthcare: Led job growth with an addition of 52,000 positions.
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Transportation and Warehousing: Added 18,000 jobs.
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Retail and Leisure: Experienced job losses, though specific figures were not provided.
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Federal Government: Saw a reduction of 10,000 jobs, with expectations of more significant impacts in future reports due to ongoing layoffs.
Wage Growth
Average hourly earnings increased by 0.3% from January and are up 4% compared to the same period last year.
Wall Street's Reaction
Following the release of the jobs report, stock futures rose, indicating that investors viewed the modest job gains as a sign that the Federal Reserve might reconsider aggressive interest rate hikes. The 10-year Treasury yield fell to 4.22%, reflecting increased demand for government bonds amid concerns about slowing economic growth.
Analysts' Perspectives
Economists note that the labor market is showing signs of cooling, with a rise in part-time employment and shorter average workweeks. These indicators suggest that employers are becoming cautious amid economic uncertainties, including potential impacts from recent federal layoffs and trade policies.
Looking Ahead
The February jobs report reflects a labor market that is growing but facing headwinds from policy changes and economic uncertainties. Investors and analysts will be closely monitoring upcoming data releases and Federal Reserve decisions to gauge the future direction of the economy.
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