The latest US jobs report, released on Friday, revealed modest shifts in the labour market, with employment growth ticking up slightly and the unemployment rate climbing to 4.1%. The figures come amid ongoing investor concerns about the health of the US economy and its labour landscape.
Data from the Bureau of Labour Statistics showed 151,000 jobs added in February, below economists’ forecasts of 160,000 but higher than January’s revised figure of 125,000 (down from an initial 143,000). The unemployment rate edged up from 4% to 4.1%, while federal government employment fell by 10,000 jobs, reflecting cuts linked to the Department of Government Efficiency (DOGE).
RSM chief economist Joe Brusuelas described the report as a “Goldilocks” outcome, balancing stability with caution. “Over the next three to six months, we’ll likely see the disruptive effects of [policy changes] in Washington ripple through the economy,” he told Yahoo Finance. “For now, adding 100,000 to 150,000 jobs monthly keeps employment steady—and that’s precisely what we saw.”
Wage growth, a key indicator for inflation, slowed slightly to 4% annually in February, down from 4.1% in January. Monthly wage increases also dipped to 0.3%, compared to 0.4% the previous month. Meanwhile, labour force participation fell to 62.4% from 62.6%, hinting at broader challenges in workforce engagement.
Thomas Ryan, North America economist at Capital Economics, noted the labour market remains “in decent shape” but warned the full impact of DOGE-related job reductions would become clearer in coming months.
The report landed during a volatile week for markets, with the Nasdaq Composite (^IXIC) entering correction territory—down over 10% from its mid-December peak—and the S&P 500 (^GSPC) hitting its lowest close this year. Investor sentiment has been rattled by weaker-than-expected economic data and uncertainty over President Trump’s tariff announcements.
Despite the turbulence, expectations for Federal Reserve interest rate cuts held steady, with markets still pricing in three reductions this year—above the one or two projected last month, per Bloomberg Data. Major stock indexes saw modest gains following the report’s release.