News
US adds 151,000 jobs in February as federal workforce declines
The News
The US jobs market performed slightly worse than expected in the first full month of Trump’s second presidential term, but still showed solid growth.
Total nonfarm employment increased by 151,000 in February, the Labor Department reported Friday, missing the expected 170,000 increase, but representing an improvement on January’s figures.
Investors were watching the report closely for signs of how Trump’s early economic agenda is playing out. The president has moved to impose hefty tariffs on Canada, Mexico, and China — some of which have since been paused — sparking concerns of price increases for US businesses and consumers.
Meanwhile, the federal workforce lost 10,000 employees in February in an unusually sharp decline, likely reflecting sweeping cuts to the workforce by Elon Musk’s Department of Government Efficiency. Musk has moved aggressively to shrink the government, offering several months’ pay for workers who resign while threatening future layoffs .
Unemployment ticked up to 4.1% in February from 4% the previous month, after two consecutive decreases.
The moderate growth in total nonfarm employment “would normally be welcome as dovish news,” David Russell, head of market strategy at trading platform TradeStation, told Semafor via email. “However, investors see clouds on the horizon. This could be the calm before the storm of much weaker employment.”
The S&P 500 and Nasdaq Composite both edged up less than 1% following the report.