The United States job market saw slower-than-expected growth in February, with nonfarm payrolls rising by a seasonally adjusted 151,000, according to the Bureau of Labor Statistics (BLS).
While the figure came in higher than the downwardly revised 125,000 jobs added in January, it fell short of the consensus forecast of 160,000. The unemployment rate ticked up to 4.1%.
Government employment was a notable area of decline, with federal jobs decreasing by 10,000, despite an overall increase of 11,000 in government payrolls.
The reductions follow recent efforts to streamline the federal workforce, though their full impact may not be visible until future reports.
Private sector job gains were led by health care, which added 52,000 positions, in line with its 12-month average.
Other industries contributing to employment growth included financial activities, adding 21,000, transportation and warehousing, gaining18,000, and social assistance, up 11,000. However, retail employment dipped, shedding 6,000 jobs.
Wage growth remained stable, with average hourly earnings rising 0.3% on the month. The annual increase of 4% was slightly below the expected 4.2%, indicating a moderate pace of wage expansion.
Despite continued job growth, some labour market indicators were less encouraging. The labour force participation rate declined to 62.4%, its lowest level since January 2023, as the labour force shrank by 385,000.
A broader measure of unemployment, which includes discouraged workers and those in part-time roles for economic reasons, climbed to 8%, marking its highest level since October 2021.
Additionally, the household survey used to determine the unemployment rate showed a significant drop of 588,000 employed individuals. The number of workers in part-time roles but seeking full-time employment increased by 460,000 to 4.9 million.
