The US economy lost 92,000 jobs in February, marking an unexpected and widespread slowdown in the labour market, according to data released by the US Department of Labor. The decline sharply contrasts with January’s gain of 126,000 jobs and fell far below economists’ expectations of around 50,000 new jobs, based on a survey by The Wall Street Journal. The unemployment rate rose slightly to 4.4%, highlighting growing weakness in the labour market after months of sluggish hiring, said a WSJ report.
Healthcare Strike Weighson Job Numbers
One of the biggest setbacks came from the healthcare sector, which had previously supported job growth. Employment in healthcare and social assistance fell by 18,600 jobs, partly due to a strike involving 31,000 workers at Kaiser Permanente in California.
Private-sector employment overall declined by 86,000 jobs, signalling broader softness across multiple industries.
Hiring Slows Across Key Sectors
The downturn affected several major sectors of the economy:
The construction sector had previously supported employment growth, partly driven by rising demand for new data centres.
Policy Uncertainty and AI Fears Impact Hiring
Economists say hiring has slowed over the past year due to multiple factors, including shifting tariff policies under President Donald Trump, expectations that artificial intelligence could reduce staffing needs, and cuts to the federal workforce.
Kevin Hassett, director of the White House National Economic Council, argued the downturn may reflect temporary factors, including statistical adjustments in how businesses opening and closing are counted.
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