The U.S. added fewer jobs than expected in February, the first full month under President Donald Trump, according to government data released on Friday.
Employers added 151,000 jobs in February, falling short of the 170,000 expected by economists. This job growth was below the monthly average seen during the Biden administration. As a result, the unemployment rate ticked up slightly to 4.1%, though it remains low by historical standards.
Despite the disappointing jobs report, stock market futures appeared unaffected. The major stock indexes went up shortly after the news was released.
The number of jobs increased in various sectors, including healthcare, social assistance, and finance. However, the federal government cut 10,000 jobs in February, which may be linked to staff reductions under the Trump administration.
This jobs report comes during a period of uncertainty for U.S. stocks and trade relations, following the tariffs imposed by the Trump administration earlier in the week.
Although some tariffs were temporarily removed on Thursday, stocks still took a hit. The Dow Jones Industrial Average dropped 425 points (1%), the S&P 500 fell 1.7%, and the tech-heavy Nasdaq sank 2.6%.
The tariffs are just one part of the many policy changes under the Trump administration, including budget cuts and the targeting of diversity, equity, and inclusion programs. The administration has also laid off tens of thousands of federal workers, though these cuts were not fully reflected in the February jobs report.
At the same time, the economy is dealing with rising inflation, a trend that began during the final months of the Biden administration.
In January, consumer prices rose 3% compared to a year ago, surpassing the Federal Reserve’s 2% target. Egg prices, a notable example of rising costs, jumped 53% in January, largely due to a bird flu outbreak that hurt the egg supply.
In February, a key measure of consumer confidence saw its biggest drop since August 2021, according to the Conference Board. More people expect a recession within the next year, and many believe the job market will worsen, the stock market will decline, and interest rates will continue to rise.
