Source: Fortune
Summary
American employers unexpectedly cut 92,000 jobs in February, with the unemployment rate rising to 4.4%. Economists had expected 60,000 new jobs. Revisions also cut 69,000 jobs from December and January payrolls. The weak employment picture adds to economic uncertainty amid the war with Iran, which has caused oil prices to surge and unforeseen costs for businesses and consumers. The job market had been expected to rebound this year from a lackluster 2025.
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The numbers tell one story.
Job losses were widespread, with construction companies cutting 11,000 jobs, healthcare firms shedding 28,000 jobs, and factories losing 12,000 jobs. Restaurants and bars lost nearly 30,000 jobs. Despite this, average hourly wages rose 0.4% from January and 3.8% from a year earlier. The war with Iran has created a nightmare for the Federal Reserve, which must decide whether to cut interest rates to help the job market or hold off to keep a lid on prices. Employers were already reluctant to hire last year due to uncertainty over Trump’s tariffs.
The job market is struggling in the face of so many headwinds.
Author: Evan Null
