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After positive January, latest job report shows losses again

Stock market numbers are displayed on the floor of the New York Stock Exchange during morning trading on March 6, 2026. All three major indexes continued to dip at opening as oil prices rose amid war with Iran and a weak jobs report. (Photo by Michael M. Santiago/Getty Images)

Stock market numbers are displayed on the floor of the New York Stock Exchange during morning trading on March 6, 2026. All three major indexes continued to dip at opening as oil prices rose amid war with Iran and a weak jobs report. (Photo by Michael M. Santiago/Getty Images)

WASHINGTON — The United States lost 92,000 jobs in February, edging unemployment up slightly according to the latest employment figures released Friday by the Bureau of Labor Statistics.

The report showed, for the third time in the last five months, losses among nonfarm jobs and highlighted a continued “trend down” in the information sector and federal government employment. The federal workforce is down by 11% from its peak in October 2024, according to the bureau. The report also noted a decrease in health care jobs, “reflecting strike activity.” 

Unemployment ticked up to 4.4% from 4.3% in January, and rates remained higher for women, teenagers and non-white workers.

Administration officials blamed the job losses on winter weather on the East Coast and labor strife among West Coast health care workers.

But Democrats faulted President Donald Trump’s policies, including military action in Iran and reimposing tariffs after the U.S. Supreme Court said many of Trump’s taxes on foreign goods were illegal.

U.S. Senate Minority Leader Chuck Schumer said Friday’s report is a “blaring alarm that Donald Trump’s economy is deteriorating rapidly,” and speculated the nearly week-old war in Iran will only make things worse.

“Now we’ve seen job losses in two of the last three months and an economy teetering on the edge of recession,” Schumer said in a Friday morning statement. “Tariffs are increasing costs, gas prices are spiking, and jobs are evaporating: The Trump Republican agenda is failing the American people and without immediately changing course the economy may go over the cliff.”

The unexpected report, combined with uncertainty over the war with Iran, rattled U.S. markets Friday morning, sparking a drop across all indexes, according to a daily update from the New York Stock Exchange’s Eric Criscuolo. 

Economists had estimated a February jobs gain for the U.S. to land around 59,000, according to Criscuolo. Additionally, the report is in stark contrast to January’s figures, which showed the economy gained 130,000 jobs, according to the Bureau of Labor Statistics.

Trump officials project optimism

But the administration is brushing off negative headlines, and attributing the weak report to ice and snow storms in February and a month-long strike by Kaiser Permanente health care workers. 

“While record-breaking strikes and bad winter weather dragged down February nonfarm employment, the unemployment rate held steady, and there are several positive signs for our economy that continue to show American workers are recovering from the mess left behind by Biden,” Labor Secretary Lorie Chavez DeReemer said in a statement.

She added that the administration’s massive tax and spending cuts law enacted in July is positive for the economy.

Kevin Hassett, director of the White House National Economic Council, told CNBC Friday, “I think what we need to start doing with these jobs numbers, at least on the payroll side, is take the average over a few months.”

“And if you take the average over a few months, we had a surprisingly positive one last month and a surprisingly negative one this one. But on average, it’s about what we expect to be seeing,” he said, adding that the sharp fall in immigration is leading to “break-even employment” in the U.S.

No growth

Economists cautioned the jobs report builds on a negative economic outlook for the country.

“While it’s never sensible to read too much into one month of data, this morning’s report showing a decline in nonfarm payrolls and an increase in the unemployment rate comes at a difficult moment, with inflation still above target and an oil price shock threatening to raise inflation further,” said Daniel Hornung, a fellow at Stanford Institute of Economic Policy Research.

“The report complicates the Fed’s efforts to keep both unemployment and inflation low, and it makes it difficult for the Administration to argue heading into the midterms that their policies are leading to the kind of growth or improvement in living standards that they’ve long promised,” Hornung, the deputy director of the National Economic Council under President Joe Biden, said.

David Kelly, JPMorgan Asset Management’s chief global strategist, described the report as “weak.”

“We’re not seeing any job growth at all, really, in this economy,” Kelly told CNBC Friday morning. “But because immigration has done such a 180 here, and we’ve got a huge drop in the labor force — and that’s keeping the unemployment rate from spiking here — but it’s a very, very slow economy.”

Jobs report shows a historic stall in hiring last year

Construction workers install finishing touches at a Scout Motors electric vehicle assembly plant in Blythewood, S.C., in February. Health care and construction hiring helped boost January jobs, but downward revisions for the whole of 2025 marked the lowest increase in U.S. jobs outside a recession since 2003. (Photo by Jessica Holdman/SC Daily Gazette)

Construction workers install finishing touches at a Scout Motors electric vehicle assembly plant in Blythewood, S.C., in February. Health care and construction hiring helped boost January jobs, but downward revisions for the whole of 2025 marked the lowest increase in U.S. jobs outside a recession since 2003. (Photo by Jessica Holdman/SC Daily Gazette)

U.S. jobs increased by 130,000 in January, buoyed by hires in health care, social assistance and construction.

But in another sign of anemic hiring last year, estimates for 2025 were revised down by more than a million jobs to a level of low growth rarely seen outside of recessions. 

The revisions show the United States added only 181,000 jobs last year — the first year of the new Trump administration — one of the lowest increases ever outside recessions. 

Jobs dropped in 2020 at the height of the pandemic and in 2008-2009 in the Great Recession, but otherwise the last time was a lower increase in jobs was in 2003, when they rose 124,000 after two years of decreases, during a period labeled a “jobless recovery” by economists.  

Economist Claudia Sahm, who had predicted 2025 would be “a year without jobs, but no recession” before the annual revisions based on more complete data, said Wednesday that “the downward revisions are huge” in an X post.

The new revisions changed the most for January 2025, which went from a gain of 111,000 to a loss of 48,000 jobs. Only one month, October, saw an upward revision: A reported loss of 173,000 jobs was trimmed to a loss of 140,000 jobs. There are now four months of job losses reported last year, up from three. 

Overall, the number of total U.S. jobs at the end of the year was revised down by 1,029,000, from a little more than 159.5 million to a little less than 158.5 million. 

State by state jobs estimates for January are not yet available. 

There have been about 29,000 layoffs announced so far in 2026,according to notices tracked by WARN Tracker. They include 7,705 layoffs in California, 6,109 in New Jersey, 3,999 in Pennsylvania, 3,483 in Washington state and 2,607 in Texas. 

Stateline reporter Tim Henderson can be reached at thenderson@stateline.org.

This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Wisconsin Examiner, and is supported by grants and a coalition of donors as a 501c(3) public charity.

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