US sees 92,000 job-cuts in February

The US labor market showed unexpected weakness in February as employers cut 92,000 jobs, pushing the unemployment rate up to 4.4%, the Labor Department reported Friday.

Economists had forecasted a gain of 60,000 jobs after January’s 126,000 increase. Payroll revisions also reduced December and January figures by 69,000 jobs.

The February downturn comes amid uncertainty from the war with Iran, which has spiked oil prices and raised costs for businesses and consumers. Heather Long, chief economist at Navy Federal Credit Union, said companies are likely to hold off hiring until the conflict ends and consumer spending stabilizes.

Job losses were broad-based. Healthcare shed 28,000 jobs following a four-week nurses’ strike at Kaiser Permanente in California and Hawaii. Restaurants and bars lost nearly 30,000 positions, administrative and support services 19,000, and courier services 17,000. Construction cut 11,000 jobs, and factories lost 12,000 positions, marking 14 of the last 15 months of declines. Financial firms added 10,000 jobs.

Average hourly wages rose 0.4% from January and 3.8% year-on-year.

Analysts note companies remain cautious due to geopolitical uncertainty, inflation, and investments in new technologies such as artificial intelligence, which allow higher productivity with fewer workers. Many firms are adopting a “no-hire, no-fire” approach, hesitant to expand staff until the economic and geopolitical outlook stabilizes, leaving the labor market under strain despite past hiring growth.

This report highlights the fragility of the US economy amid global shocks and rising costs.