The U.S. economy added 151,000 jobs in February, despite growing uncertainty surrounding trade policies and economic shifts under the Trump administration. However, the unemployment rate edged up to 4.1% from 4% in January, according to data released Friday by the Labor Department.
The latest employment figures defied expectations that trade policy uncertainty would slow hiring. Instead, the economy maintained its momentum, with private education and health services leading the way by adding 73,000 jobs.
The financial activities sector also saw a notable boost, contributing 21,000 new positions, well above its prior 12-month average gain of 5,000 jobs.
Despite the overall gains, some industries experienced job losses. The leisure and hospitality sector shed 16,000 jobs, while food and beverage retailers cut 15,000 positions, largely due to strike activity.
The federal government workforce contracted by 10,000 jobs, which many attribute to cost-cutting measures driven by Elon Musk’s Department of Government Efficiency. However, state and local government employment grew by 11,000, offsetting the federal cuts.
U.S. stocks opened lower Friday as investors digested key labor market data. The Dow opened 0.3% lower, dropping around 75 points. The broader S&P 500 fell 0.2%, while the tech-heavy Nasdaq Composite declined 0.1%.
Despite the strong hiring numbers, inflation concerns and policy uncertainty continue to weigh on economic sentiment.
“The economy is off to a slow start under the new president,” Chris Rupkey, chief economist at FwdBonds said, according to CNN. “You can’t have mass firings of federal workers and government contractors and think it is not going to mean job losses for the private sector.”
“Jobs are headed in the minus direction if migrants are sent home, because the US population bust means there are no native born Americans to take those jobs,” Rupkey wrote in a note Friday. “Changing the pattern of migration from in to out means fewer workers to build houses, wash dishes in restaurants and comfort your mother in hospice care.”
Originally published on HNGN
