America's economic recovery has taken an unexpected hit after areportrevealed 92,000 jobs were lost last month, pushing unemployment higher and intensifying fears over inflation and oil prices under Trump.

The decline alarmed economists and policymakers, who had predicted modest job growth. Instead, American employers cut tens of thousands of positions, pushing the unemployment rate to 4.4 per cent. Businesses are already contending with rising fuel costs linked to the war in Iran, global uncertainty, and the lingering effects ofTrump's economic policies. With only about 50,000 new jobs expected next month, many fear the US economy is entering a prolonged period of weak hiring and persistentinflation.

BREAKING: We’ve just got HORRIBLE jobs numbers.We LOST 92,000 Jobs.Analysts expected 50,000 NEW jobs.So as gas prices soar 60 cents in under a week, which will undoubtedly lead to more INFLATION, we just got horrible news on jobs. This means the FED is stuck between a rock…pic.twitter.com/t6KrpJ646g

American employersunexpectedly shed 92,000 jobs last month, when economists had forecast between 50,000 and 60,000 new positions being added, making the decline all the more concerning.

Theunemployment rate edged up to 4.4 percent, signalling that the labour market may be losing momentum after a brief period of optimism earlier this year. Revisions to previous data also wiped out another 69,000 jobs from December and January payroll figures.

Economists say the figures show the US job market remains under pressure. Olu Sonola, head of US economics at Fitch Ratings, said the latest data undermined hopes of a recovery. 'Just when it looked like the labour market was stabilising, this report delivers a knock-down blow to that view,' he said. 'It's bad news whichever way you look at it.'

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The 92,000 job losses were not concentrated in one sector but spread across the economy. Restaurants and bars shed nearly 30,000 jobs, reflecting weaker consumer demand and rising operating costs. Healthcare lost around 28,000 jobs, largely due to a strike involving more than 30,000 nurses and workers at Kaiser Permanente facilities.

Manufacturing also continued to struggle, losing about 12,000 jobs, with factories having shed workers in 14 of the past 15 months. Construction firms cut roughly 11,000 jobs, partly due to harsh winter weather, while administrative services eliminated nearly 19,000 roles and courier services lost about 17,000. Financial firms offered a rare bright spot by adding roughly 10,000 jobs.

The weak figures follow years of uncertainty linked to Trump's economic policies. Businesses struggled throughout 2025 to adjust to shifting tariffs and unpredictable trade measures, and hiring slowed sharply as a result. Employers added only about 15,000 jobs per month during 2025, making it one of the slowest years for job growth since the pandemic. Although January's stronger figures had raised hopes of a rebound, the latest report suggests those hopes may have been premature. Thus, economists are reminding companies to remain cautious about expanding their workforce while costs and global risks remain high.

Source: International Business Times UK