US Job Market Stalls Ahead of Federal Reserve Decision

US Economy Sees Unexpected Job Losses in February

The US Labor Department released its February jobs report on Friday, revealing a decline of 92,000 jobs and an increase in the unemployment rate to 4.4 percent. This marks the sixth contraction of the US job market during the Trump administration.

Economists had forecast marginal gains, with estimates ranging from 59,000 to 50,000 new jobs. However, the actual number fell short of expectations.

The healthcare sector was particularly affected, losing 28,000 jobs in February. Cuts to the federal government also continued, with a decrease of 10,000 jobs across the industry. Despite this, strikes in California, Hawaii, and New York highlighted the challenges faced by the sector.

In contrast, industries such as education and health services added 58,000 jobs according to the ADP private payroll report. Tariff-exposed sectors, including transportation and warehousing, lost 11,000 jobs for the month.

The US central bank’s next policy meeting is scheduled for March 17-18, with economists expecting the Fed to maintain its benchmark overnight interest rate within the 3.50-3.75 percent range. The odds of a June rate cut have increased following Friday’s data.

Market reactions were immediate, with US markets experiencing losses in midday trading. The Nasdaq was down 0.8 percent, the S&P 500 by 1 percent, and the Dow Jones Industrial Average by 1.1 percent.

The White House did not respond to Al Jazeera’s request for comment on the matter.

Source: Al Jazeera