America lost jobs at an alarming rate last month, dealing a sharp blow to the White House's economic narrative just as the administration was hoping for a labour market revival in 2026.
TheUS Bureau of Labor Statisticsreleased itsFebruary employment reporton March 6, 2026, showing that total nonfarm payroll employment fell by92,000, a figure that blindsided economists who had forecast a gain of roughly 60,000 jobs.
The unemployment rate edged up to 4.4%, from 4.3% in January. The data, coupled with troubling downward revisions to prior months and a weakening GDP reading, has cast fresh doubt on the administration's 'golden age' economic messaging as the United States continues to grapple with the financial fallout from itswar with Iran.
The February contraction does not stand alone. TheBLS reportalso revised December 2025's initially reported gain of 48,000 jobs to a net loss of 17,000, and trimmed January's 130,000-job figure down to 126,000. These revisions removed a further 69,000 jobs from the prior two months' totals, making 2025 the first year since 2010 to record five months of labour market contractions, a period when the economy was still recovering from the global financial crisis.
The Labour Department reported that hiring weakened in February compared with January, when companies, non-profits and government agencies added a combined 126,000 jobs. That January figure had briefly raised hopes of market stabilisation.
The government released the February jobs report this morning.92,000 jobs lost. 4.4% unemployment. 3rd job loss in 5 months. Manufacturing down 100,000 since Trump took office.Washington's response? Start a war.Someone needs to answer for this.https://t.co/aAZWxBY27l…
Those hopes did not survive Friday's data. 'Just when it looked like the labor market was stabilizing, this report delivers a knock-down blow to that view,' said Olu Sonola, head of US economics at Fitch Ratings. 'It's bad news whichever way you look at it.'
The job market had been expected to rebound this year from a lackluster 2025, when the economy averaged roughly 50,000 new jobs per month across Trump's first term, buffeted by the president's erratic tariff policies and the lingering effects of high interest rates. That rebound has not materialised.
The losses were broad, though not uniform. February's job losses were widespread, with factories, construction companies and the federal government all shedding workers. Even health care, which has been a consistent source of strength in the job market, lost 28,000 jobs in February, partly as a result of a nurses' strike.
The strike at Kaiser Permanente hospitals in California and Hawaii temporarily removed around 31,000 nurses and front-line health-care staff from payrolls. TheEconomic Policy Institutenoted that roughly one-third of February's private-sector losses were directly linked to the industrial action, which is by definition temporary. Nevertheless, analysts warned against overlooking the underlying weakness.
Source: International Business Times UK