US employers cut jobs in February, marking a weaker start to the year for the labor market. The Bureau of Labor Statistics said total nonfarm payrolls fell by 92,000 after a revised gain of 126,000 in January. The unemployment rate rose from 4.3% to 4.4%, while the number of unemployed people increased to about 7.6 million.
The February report points to softer hiring across several sectors. Healthcare led the decline, although strike activity played a major role in that drop. Information and federal government payrolls also fell, while wage growth stayed firm and the average workweek held steady.
The biggest drag came from healthcare, where employment fell by 28,000 in February. Within that sector, offices of physicians lost 37,000 jobs, and the BLS said strike activity drove much of that decline. Hospitals added 12,000 jobs, which limited the overall drop. Over the previous 12 months, healthcare had added an average of 36,000 jobs a month, so February marked a sharp break from that trend.
Information employment fell by 11,000 and continued a longer decline in that industry. Federal government payrolls dropped by 10,000 in February. BLS said federal employment has fallen by 330,000 since its October 2024 peak. Transportation and warehousing also slipped by 11,000, though other major industries showed little change during the month.
BLS also revised earlier payroll data lower. December payrolls changed from a gain of 48,000 to a loss of 17,000. January payroll growth was revised from 130,000 to 126,000. Together, those revisions reduced previously reported employment by 69,000.
Household survey data showed a modest deterioration in labor market conditions. The labor force participation rate slipped to 62.0% from 62.1% in January. The employment-population ratio also declined to 59.3% from 59.4%. BLS reported that the number of employed people fell by 185,000 over the month, while the number of unemployed people rose by 203,000.
Unemployment rates across several groups showed limited movement, but some categories worsened. The jobless rate for Black workers rose to 7.7% from 7.3%, and the rate for Asian workers increased to 4.8% from 4.2%. The rate for Hispanic workers rose to 5.2%, while the rate for White workers remained at 3.7%. Teen unemployment stood at 14.9%.
Average hourly earnings still increased by 0.4% in February and were up 3.8% from a year earlier. This suggests wage growth remains steady even as hiring slows. The average workweek stayed at 34.3 hours.
A separate BLS release showed nonfarm business productivity rose at a 2.8% annualized rate in the fourth quarter of 2025. Output increased 2.6%, while hours worked slipped 0.2%. Unit labor costs also rose 2.8%, and hourly compensation climbed 5.7%.
These figures suggest many companies continue to improve efficiency while keeping payroll growth restrained. For policymakers, the February jobs report adds a fresh sign of a cooling labor market. However, steady wage gains and recent productivity growth may keep the Federal Reserve cautious as it weighs the next move on interest rates.
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