US Job Market Shows Stability Amid Federal Workforce Cuts and Economic Uncertainty
The US labor market added 151,000 jobs in February, despite government job losses and rising unemployment due to economic policy changes.
After some amazing jobs reports in the closing months of 2024, the tallies from January and February might seem a bit of a letdown, but all things considered, the latest data isn’t bad.
Job growth falls short of expectations in the early months of 2025
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The report does confirm that the labour market is cooling.
US job growth stable as government cuts start
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The softness in the jobs numbers upped the odds that the Federal Reserve will resume cutting interest rates this year.
February jobs report shows labor market softness, early Musk impact
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European stock markets have slumped after Donald Trump’s second reversal on tariffs caused deep uncertainty among investors, while the euro was on track for its biggest weekly rise since the financial crisis.
US unemployment rate rises to 4.1% as economy added 151,000 new jobs in February – as it happened
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Summary
The US labor market added 151,000 jobs in February, as federal employment fell by 10,000. The unemployment rate rose to 4.1%. While hiring remained steady in other sectors, analysts warned of underlying weaknesses potentially worsened by federal layoffs and trade uncertainties. Experts note a cooling trend in the job market may require Federal Reserve intervention to maintain economic stability. Despite some robust monthly job gains, concerns about inflation and interest rates loom.
Perspectives
The overall hiring in February was stable with 151,000 jobs added, though this was overshadowed by the loss of 10,000 federal jobs amidst cuts to government positions.
Despite low unemployment rates, there are signs of weakness in the labor market, including a drop in the employment-to-population ratio and higher metrics of underemployment and discouragement among job seekers.
Concerns are growing over the potential long-term impacts of government layoffs, public spending cuts, and tariff uncertainties on the broader economic landscape.