US Job Market Stays Strong Despite Early Effects of Government Cuts

In February, the US job market showed stability amidst initial impacts from President Donald Trump’s government workforce cuts. The Labor Department reported a loss of 10,000 federal jobs, but overall employment increased by 151,000 positions, keeping the unemployment rate slightly up at 4.1%. While hiring trends in healthcare and finance drove gains, the manufacturing sector added around 10,000 jobs, indicating ongoing strength despite federal layoffs. Analysts had anticipated around 170,000 new jobs, suggesting the economy is experiencing a cooling trend with lingering uncertainties stemming from policy changes like tariffs and spending cuts. Industry experts noted a 4% rise in average hourly pay over the past year, but also observed increased part-time employment due to weaker business conditions. Additional data illustrated a sharp decline in manufacturing orders and significant drop in retail sales, alongside pronounced layoff announcements, further reflecting a cooling labor market. The stock market responded negatively, with shares falling, indicating growing concern about economic stability as the full effects of federal cutbacks are yet to unfold.