The US labor market showed signs of resilience in February, with nonfarm payrolls increasing by 151,000 jobs, according to the Bureau of Labor Statistics. This follows a downwardly revised gain of 125,000 jobs in January. However, the unemployment rate edged up to 4.1%.
Economists had projected a stronger job growth of 160,000 positions, with estimates ranging widely from 30,000 to 300,000. The slight uptick in unemployment from 4.0% in January adds to the growing uncertainty surrounding the job market.
This report, the first under President Donald Trump’s administration, comes amid concerns over trade policy and deep federal spending cuts. Economists warn that businesses are struggling to plan due to shifting trade strategies, potentially weakening job growth in the coming months.
Consumer and business confidence, which initially surged after Trump’s election, has declined sharply since January. This uncertainty has also impacted the stock market, with all three major Wall Street indexes turning negative for the year. The Nasdaq Composite, which peaked in December, has now entered correction territory.
A resilient job market suggests the US Fed may delay rate cuts. However, recent economic data indicates a slowdown in consumer spending, retail sales, manufacturing and construction, while housing activity remains sluggish, leading to lowered first-quarter growth forecasts.
(With inputs from agencies)