WASHINGTON–The U.S. lost 92,000 jobs in February, with the hiring numbers, from the Labor Department falling far short of January’s gain of 126,000 jobs.
The unemployment rate ticked slightly higher to 4.4%, with analysts expressing additional concerns because not only was the February job decline steeper than he had expected, there were downward revisions to December and January that lowered the U.S. job count by an additional 69,000.
“February’s employment numbers came in much lower than anticipated, as businesses continued a lower hiring trend,” said Curt Long, chief economist with Americas Credit Unions. “The economy lost 161,000 jobs when accounting for February’s losses and downward revisions to the prior two months. The health care sector, which has been the primary source of job growth over the last two years, lost jobs due to a physicians’ strike, according to the BLS. With unemployment rate remaining stable, the Federal Reserve may shift its focus toward inflation concerns as oil prices rise. Credit unions remain a trusted financial partner for members in communities where the job market is under more stress.”
The U.S. has now lost jobs in three of the past six months, with other analysts and economists suggesting the numbers raise expectations that the Federal Reserve will have to cut rates.
‘Uncomfortable Moment’
“For the Fed, a labor market stumble comes at an uncomfortable moment because policymakers are already contending with new potential disruptions to energy and commodity prices following the U.S.-Israel military campaign in Iran that has closed key global shipping lanes,” noted the Wall Street Journal in its analysis. “Those disruptions raise the prospect of another bout of price increases in an economy where inflation has been above the Fed’s 2% goal for five years.”
Forecasters had been predicting the Fed will hold rates steady when it meets later this month.
Where Job Losses Occurred
The new BLS data show February’s job losses were widespread, including:
- Healthcare and social assistance, which has been the primary engine of job growth for much of the past two years, shed 18,600 jobs in February. That marked a sharp pullback from January, when the sector added 116,400 positions. A strike by 31,000 workers at Kaiser Permanente weighed on the number of healthcare workers, analysts noted.
- Construction lost 11,000 jobs.
- Leisure and hospitality, which employs roughly one in 10 American workers, lost 27,000 jobs.
- Manufacturing lost 12,000 jobs.
- Federal government employment fell by 10,000.
