U.S. employers added 151,000 jobs in February, bringing unemployment rates to 4.1% as jobs became relatively stable in the first month of employment data from the Trump administration.
The figure was below 160,000 jobs, but still represents an increase from the overwhelming 143,000 jobs in January amidst the bushfires and heavy snowstorms. Data on Friday expanded its job growth streak to 50 months, according to the Bureau of Labor Statistics.
Analysts had expected the unemployment rate to still be 4%.
After initial clicking, the S&P 500 has been inch down following the release of a weaker than expected report. The Dow and Nasdaq also moved slightly lower on Friday morning.
“The Federal Reserve may be happy to put it on rates later this month. Please note that the risks of tariffs and other actions at the federal level pose both inflation and negative side growth risks,” said Mark Hamrick, senior economic analyst at Bankrate, in a memo.
“It is possible, but it is not certain that central banks can choose to cut fees in the coming months, as officials still see the current levels as restrictive,” he added.
Federal Reserve Chairman Jerome Powell on Friday suggested that the central bank is unlikely to offer President Trump his highly decisive interest rate cuts anytime soon.
The Federal Reserve is primarily pending interest rate cuts, and Powell says he is not trying to shift its policy any time soon.
However, central bankers are on high alert about signs of economic weakness that could change that attitude.
A Labor Bureau report released Thursday showed that ongoing unemployment claims (a measure of people who have not been working for a long time) were approaching a three-year high in January, suggesting job seekers are spending more demanding hours.
Friday's report first peered into analysts the role Elon Musk's government efficiency played in employment last month.
Federal employment fell by 10,000 in February, according to the Bureau of Labor Statistics.
However, the report is based on a survey conducted in the second week of the month, so the Doge mass shooting and the freezing of the entire federal agency may not fully appear until future data reports.
“Friday's employment report was weaker than expected,” said Glenn Smith, chief investment officer at GDS Wealth Management.
“It suggests that businesses are pausing employment until more certain of their tariff policy and economic outlook,” he added.
The leisure and hospitality sector lost 16,000 jobs in February, according to the Labor Bureau. Data shows bars and restaurants suffered the worst decline, cutting 27,500 positions.
The inflation figures are hotter than expected last month, hoping for minor interest rate cuts and even fearing that the Fed might be tempted to raise interest rates.
However, consumer trust plummeted in February, suffering the biggest monthly decline in four years. More weaknesses in Friday's report could have changed the Fed's stubborn outlook on interest rates, but employment remained relatively stable.
Otherwise, the stock market is heading for one of the worst weeks in months after Trump suffered intense volatility after he put in the tariffs. First, they will impose strict taxes on Canada and Mexico, then they will suspend for 30 days.
“The stock market is moving at lockstep with tariff headlines, which could really increase volatility in the near future, as the market doesn't like uncertainty,” Smith said.
Economists warn that 25% tariffs on Canadian and Mexican goods and 20% collection in China could reheat inflation.
In his address to the Congressional joint session on Tuesday, Trump acknowledged that Americans “have to endure” him through the “adjusting period.”
