U.S. Added 151,000 Jobs As Unemployment Rose To 4.1% In February

Posted by author March 7, 2025 Jobs

Topline

The labor market exhibited some signs of weakness last month, according to the latest monthly jobs report released Friday morning, as the U.S. economy flashes mixed signals in the early stages of President Donald Trump’s second term.

Secondary reports heading into Friday revealed a shakier than expected labor market.

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Key Facts

The U.S. added 151,000 non-farm jobs from January to February, according to the Labor Department’s seasonally adjusted data, the weakest February growth since 2019.

That compares to consensus economist forecasts of 170,000 net new jobs, according to Dow Jones data.

The unemployment rate was 4.1% last month, compared to estimates of 4%, where it stood in January.

The Labor Department revised its approximation of December jobs added from 307,000 to 323,000 and its January estimate from 143,000 to 125,000, equating to 2,000 of downward revisions.

Big Number

19%. That’s how much lower this January and February’s 276,000 estimated job growth is than the 341,000 jobs added during the first two months of 2024.

Surprising Fact

Government jobs declined by 10,000 last month, according to the Labor Department, as Elon Musk’s Department of Government Efficiency initiated its effort to shrink the federal workforce. Bank of America economist Shruti Mishra predicted government employment would grow by a “slightly smaller than average” 25,000 in February. The March jobs report is “more likely to be adversely affected by federal layoffs,” according to Mishra, noting the timing of the February survey data coming mostly before the federal government announced tens of thousands of layoffs.

What To Watch For

Federal Reserve Chairman Jerome Powell will speak at the U.S. Monetary Policy Forum at 12:30 p.m. EST, his last scheduled public appearance ahead of the Fed’s March 18-19 meeting on interest rates. Minutes from the prior Fed meeting indicated rates could be lowered further “if labor market conditions deteriorated” or “economic activity faltered,” and market expectations for rate cuts have increased recently.

Key Background

Labor market conditions have been tight for the last two years, as unemployment and job switching stay low. Friday’s labor report is another significant data point as economic uncertainty rises, as Trump waffles on tariffs and DOGE upends the federal government. Financial markets have been choppy amidst the busy first six weeks of Trump’s second term, as the S&P 500 has declined 3% and the bond yields have risen, indicating investors’ search for safety. Secondary February labor market data revealed a weakening employment picture this week. Private employers added only 77,000 jobs in February, according to ADP, far less than the 148,000 new jobs economists forecasted, while the career services firm Challenger, Gray & Christmas reported layoff announcements rose to a 4.5-year high.