MARCH 9, 2026 – – JOB LOSSES IN FEBRUARY, UNEMPLOYMENT RATE RISES
The US economy lost 92,000 jobs in February, much different than the expected 50,000 job gains, while January’s payrolls were revised downward to 126,000 new jobs from 130,000 initially reported. This is the third time in the past five months that payrolls declined. The unemployment rate rose to 4.4 percent from 4.3 percent in January.
The job losses are partially due to severe winter weather and a strike at a major healthcare network that caused the layoff of more than 30,000 workers. The strike has been resolved, so next month’s number will improve. Other job losses occurred in information services due to AI, manufacturing losses due to offshoring and 10,000 government jobs gone as federal payrolls are cut.
Unexpectedly, wages rose more than expected in February. Hourly wages were up 0.4 percent for the month or 3.8 percent from a year ago. Both numbers are 0.1 percent above expectations.
The Fed will not be moving on rates this month. They remain in a wait-and-see mindset, weighing the impacts of previous rate cuts, the tariffs and the war in Iran.