- US employers cut 92,000 jobs in February, defying expectations
- Unemployment rate rose to 4.4% amid healthcare strike impacts
- Labor market stability questioned after strong start to the year
US employers unexpectedly cut jobs in February and the unemployment rate rose, raising doubts about the health of the labor market.
Nonfarm payrolls decreased 92,000 last month after a strong start to the year, according to Bureau of Labor Statistics data out Friday. The unemployment rate climbed to 4.4%. The decline in payrolls partly reflected a decrease in health care employment due to strike activity.
The report calls into question whether the labor market is actually stabilizing after the worst year for hiring outside of a recession in decades. While job growth jumped at the start of the year and unemployment insurance claims have settled at a low level, companies may be starting to follow through on a series of previously announced layoffs. And a recent trend in productivity gains illustrates how spending on artificial intelligence has allowed some firms to get by with leaner staffing.
The figures could refocus the Federal Reserve's attention on the jobs market as it assesses how long to hold interest rates steady. Policymakers have been more attuned to inflation lately — even before the US-Israeli war on Iran sparked concerns among investors about price pressures.
Stock futures remained lower and Treasury yields fell after the report.
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