Jobs report shows solid gains but unemployment up slightly

Hiring was up in February, but the economy remains uncertain amid a looming trade war, a purge of the federal workforce and the deportation of millions of immigrants.

"Despite rising concerns about the health of the economy, momentum remains positive,’’ Lydia Boussour, senior economist at the tax and consulting firm EY, wrote in a commentary.

How many jobs did the U.S. add in February 2025?

By the numbers:

U.S. employers added solid 151,000 jobs last month, up from a revised 125,000 in January. The unemployment rate rose slightly to 4.1%.

The American job market has remained remarkably resilient, but it has cooled from the red-hot hiring of 2021-2023. Employers added a decent average of 166,000 jobs a month last year, down from 216,000 in 2023, 380,000 in 2022 and a record 603,000 in 2021 as the economy rebounded from COVID-19 lockdowns.

US adds 151K new jobs in Trump's first full month

U.S. employers added 151,000 jobs in February, the first full month under the new Trump administration, extending a streak of job growth to 50 months. The unemployment rate rose to 4.1 percent, from 4 percent.

Hiring continued despite high interest rates that had been expected to tip the United States into recession. The economy’s unexpectedly strong recovery from the pandemic recession of 2020 set loose an inflationary surge that peaked in June 2022 when prices came in 9.1% higher than they’d been a year earlier.

Economists expect that workers' average hourly earnings rose 0.3% last month, down from a 0.5% increase in January, a drop likely to be welcomed by the Fed — but not enough to get the central bank to cut rates at its next meeting March 18-19. In fact, Wall Street traders aren’t expecting another cut until May, and they're not especially confident about that one, according to the CME Group’s FedWatch tool.

Did the federal workforce layoffs impact job numbers?

Fed workers suing Elon Musk over 'five things' email

The Washington Examiner's Tiana Lowe Doescher joins LiveNOW's Andrew Craft to discuss top White House headlines, including Elon Musk's email to federal workers demanding a response on what they accomplished last week.

Dig deeper:

Billionaire Elon Musk’s purge of federal workers was not expected to have much impact on the February jobs numbers. The Labor Department conducted its survey of employers too early in the month for the Department of Government Efficiency, or DOGE, layoffs to show up.

Uncertain economic outlook

President Trump delays some Mexico, Canada tariffs

President Trump on Thursday exempted most goods from Canada and Mexico covered under the U.S.-Mexico-Canada Agreement (USMCA) from his 25% tariffs for the next month. FOX News' Madeline Rivera joined LiveNOW from FOX with the details.

Big picture view:

Economists warn that the economic outlook is growing more uncertain as President Donald Trump imposes — or threatens to impose — a series of taxes on imported goods.

"Steep tariff increases could cause adjustments in business decisions with knock-on effects on hiring and wages as business leaders navigate higher input costs and retaliatory measures," Boussour said. "This could lead to a more severe job slowdown, weaker income and restrained consumer spending amidst much higher inflation.’’

The Source: This report includes information from The Associated Press.

Economy