US Economy Lost 92,000 Jobs in February; Unemployment Rose to 4.4%

The US labor market experienced a surprising deterioration in February, with the economy losing 92,000 non-farm jobs, contrasting sharply with market expectations of 55,000 created jobs. This loss reversed much of January's gains (126,000 created jobs), causing the unemployment rate to climb to 4.4%.

Key points

• The loss of 92,000 non-farm jobs in February followed 126,000 jobs created in January.
• The unemployment rate increased to 4.4% in February, up from 4.3% in January and 4.2% in February 2024.
• Job destruction was notable in education and health services (-34,000 jobs), leisure and hospitality, and manufacturing.
• Public employment destroyed 6,000 jobs, marking the fifth consecutive month of job destruction in that sector.
• The Department of Labor revised December's creation of 65,000 jobs down to a loss of 17,000, and January's creation from 130,000 to 126,000.

Why it matters

These surprisingly weak employment figures raise doubts about the solidity of the US labor market and complicate the Federal Reserve's balancing act between supporting employment and containing price pressures.