U.S. employers added 151,000 jobs in February, missing analyst expectations amid ongoing efforts to streamline federal government employment.
The Labor Department’s Bureau of Labor Statistics reported Friday that payroll growth increased from a revised 125,000 in January but still fell short of the 170,000 forecast by Dow Jones economists. The unemployment rate edged slightly upward to 4.1%.
February’s jobs report reflects ongoing initiatives by Elon Musk’s Department of Government Efficiency to reduce federal employment. While overall employment improved from January’s revised increase of 125,000, the government’s drive to trim its workforce was apparent, with the unemployment rate inching higher.
Healthcare was the standout sector in job creation, adding 52,000 positions—consistent with its average monthly growth over the past year. Other industries reporting notable job growth included financial activities with 21,000 new hires, transportation and warehousing with 18,000, and social assistance, adding 11,000 jobs.
Wage growth also continued, with average hourly earnings rising modestly in February. Earnings increased at a pace consistent with recent trends, indicating continued resilience in wage growth despite broader economic uncertainty.
Economists suggest the slight miss in payrolls highlights ongoing volatility in job growth as the government navigates structural changes.