The US economy added 151,000 nonfarm jobs in February, according to the Bureau of Labor Statistics (BLS).
This was below the 12-month average gain of 168,000 jobs per month, showing signs of slower hiring across parts of the economy.
Several industries still added jobs.
- Healthcare gained 52,000 jobs, with hiring in ambulatory services, hospitals, and nursing homes.
- Financial activities added 21,000 jobs, boosted by real estate, rental and leasing, and insurance carriers.
- Transportation and warehousing added 18,000 jobs, driven by growth in couriers and air transportation.
- Social assistance employment also increased by 11,000 jobs, mainly in individual and family services.
At the same time, federal government employment fell by 10,000 jobs.
Retail trade also saw little overall change, though food and beverage retailers lost 15,000 jobs, largely due to strike activity.
Some of that loss was offset by a gain of 10,000 jobs at warehouse clubs, supercenters, and other general merchandise stores.
Unemployment Rate Holds at 4.1%
The unemployment rate remained unchanged at 4.1%, with 7.1 million people unemployed.
That’s part of a narrow range of 4.0% to 4.2% that’s held since May 2024.
Among different worker groups, the unemployment rate for White workers rose slightly to 3.8%, while rates for Black workers (6.0%), Hispanic workers (5.2%), and Asian workers (3.2%) showed little change. Teen unemployment stood at 12.9%.
The number of long-term unemployed—those out of work for 27 weeks or longer—held steady at 1.5 million, accounting for 20.9% of all unemployed workers.
Labor Force Participation and Part-Time Work
The labor force participation rate stayed flat at 62.4%, while the employment-population ratio dropped slightly to 59.9%.
A more concerning trend emerged in part-time employment for economic reasons. In February, that number jumped by 460,000 to 4.9 million. These workers wanted full-time jobs but either couldn’t find them or had their hours reduced.
The number of people outside the labor force who still want a job rose sharply by 414,000 to 5.9 million. These people weren’t officially counted as unemployed because they weren’t actively looking or couldn’t immediately take a job.
Among that group, 1.7 million were considered marginally attached—meaning they had looked for work sometime in the past year but not recently.
The number of discouraged workers, those who believe no jobs are available for them, dropped by 128,000 to 464,000.
Wages and Work Hours
Wages continued to rise in February.
Average hourly earnings for all private-sector workers increased by $0.10 to $35.93, a 4.0% gain over the past year. For production and nonsupervisory employees, average hourly pay rose by $0.09 to $30.89.
The average workweek stayed unchanged at 34.1 hours. In manufacturing, weekly hours held steady at 40.1 hours, while overtime increased slightly to 2.9 hours.
Revisions to Previous Months
The BLS also updated data for December and January.
December’s job gain was revised up by 16,000 to 323,000, while January’s was revised down by 18,000 to 125,000. Combined, those revisions show net employment over the two months was 2,000 lower than originally reported.
What This Means for the Economy
February’s report paints a mixed picture for the US labor market.
Hiring slowed, but wages are still rising and several key industries—like health care and transportation—continued to expand.
At the same time, rising numbers of part-time workers and people on the sidelines of the job market suggest some cracks beneath the surface.
Employers appear to be more cautious about expanding their workforce, particularly in retail and government jobs.
