U.S. sheds 92,000 jobs in February; Jobless rate 4.4%

Nonfarm payrolls fell by 92,000 in February, the Bureau of Labor Statistics reported Friday, after a revised 130,000 increase in January. The unemployment rate rose to 4.4% from 4.3%.

In 2025, employers added an average of about 15,000 jobs per month, BLS data show.

Gross domestic product grew at a 1.4% annualized rate in the fourth quarter of 2025, down from 4.4% in the third quarter, according to the Commerce Department. Inflation eased to 2.4% in January, the lowest in nine months, slightly above the Federal Reserve’s 2% target.

Oil and gasoline prices rose amid the war with Iran, and U.S. crude reached its highest level since June. The Dow Jones Industrial Average fell 785 points on Thursday.

After a hiring slowdown last year, the Federal Reserve cut interest rates by a quarter point three times, then left rates unchanged in January. The next interest-rate decision is scheduled for March 18.

As we covered previously, markets looked to the February jobs data for signs of cooling. Analysts expected Nonfarm Payrolls to slow to 70,000 with unemployment at 4.3%. High-frequency indicators remained firm: weekly jobless claims were 213,000 for the week ended Feb. 28, and announced layoffs fell to 48,300 from 108,000 in January. Q4 productivity eased to 2.8% annualized from 5.2%, lifting unit labor costs to 2.8%. Volatility picked up and credit spreads widened. Forecasts pointed to two 25 bp Fed cuts in June and September, while a stronger print was expected to push yields and the dollar higher.