The US economy unexpectedly lost 92,000 jobs in February, raising concerns about whether the country’s labour market is starting to weaken. The unemployment rate ticked up to 4.4%, surprising economists who had expected hiring to remain steady.
This marks the largest monthly job loss since October 2024, when a government shutdown disrupted employment. Analysts note that rising oil prices, partly fueled by the ongoing US-Israel-Iran conflict, may be contributing to the slowdown.
Nearly every sector saw job reductions, including healthcare, which faced strikes last month. Federal government employment also continued to decline, dropping by 10,000 positions in February. Since peaking in October 2024, federal employment has decreased by 330,000 jobs, or 11%, according to the Labor Department.
Earlier job gains in December and January were also revised downward, undermining hopes that hiring would pick up after a slowdown in 2025, the weakest year for US job growth since the pandemic.
Economists say the report challenges the idea that the labour market has “turned a corner.” While a rebound in healthcare hiring is expected, rising oil prices could complicate the US central bank’s decisions on interest rates. Analysts warn the Federal Reserve may now face tough choices between supporting growth and controlling inflation.
