US labor market provides 151,000 jobs, unemployment fee ticks as much as 4.1%

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The February jobs report out Friday provided few surprises for buyers, with job positive aspects growing barely and the unemployment fee rising to 4.1% amid heightened investor fears over the trajectory of the US labor market and broader financial system.

Knowledge from the Bureau of Labor Statistics launched Friday confirmed 151,000 new jobs have been created in February, lower than the 160,000 anticipated by economists however extra greater than the 125,000 seen in January. The unemployment fee rose to 4.1% from the 4% seen within the prior month. January’s month-to-month job positive aspects have been revised decrease from a earlier studying of 143,000.

With the Division of Authorities Effectivity’s (DOGE) job cuts in focus, federal authorities employment declined by 10,000 in February.

RSM chief economist Joe Brusuelas informed Yahoo Finance the February jobs report was a “Goldilocks” print.

“We all know that over the subsequent three to 6 months, we will see among the disruptive results in Washington begin to present up in each the financial system and within the labor market,” Brusuelas mentioned. “However for now, what this tells us is that we actually solely want so as to add about 100,000 to 150,000 jobs a month to maintain employment secure. That is precisely what occurred.”

Wage progress, an essential measure for gauging inflation pressures, rose 4% over the prior 12 months in February, down from the 4.1% seen in January. On a month-to-month foundation, wages elevated 0.3%, under the 0.4% seen the prior month.

In the meantime, the labor drive participation fee fell to 62.4% from the 62.6% seen in January.

The report comes throughout every week that is been stuffed with whipsaw market motion, as buyers have digested a string of weaker-than-expected financial knowledge and constant circulation of tariff headlines from President Trump which have additionally muddled the expansion outlook.

On Thursday, the Nasdaq Composite formally entered a correction because the index is now greater than 10% off its mid-December document shut whereas the S&P 500 closed at its lowest stage of the 12 months.

Market bets on Federal Reserve curiosity cuts moved little following Friday’s launch and inventory futures have been barely larger.

Traders are nonetheless pricing in three rate of interest cuts for this 12 months, above the vary of 1 or two seen final month, per Bloomberg Knowledge.

This can be a breaking information submit. Extra to come back…