The U.S. economy created 151,000 jobs in February, coming in below the forecast 170,000 jobs, as federal job cuts escalated under President Donald Trump’s economic plan. The jobless rate however rose a small notch to 4.1% from 4.0% in January, reported the Bureau of Labor Statistics (BLS).
While the private sector rolled on net (+208,000)—driven by the health care (+52,000), financial (+21,000), and transportation (+18,000) sectors—federal government jobs vanished by 10,000, a first since mid-2022. This downsize is part of Elon Musk’s Department of Government Efficiency (DOGE) program to reduce red tape. Analysts estimate that up to 500,000 federal jobs might be lost.
The count of part-time jobs for economic reasons rose by 460,000, to 4.9 million a pandemic-era record. Yet, despite all these challenges, some economists hold onto guarded hope. “Though the economy is closing at the labor market, the worst case fear has not come true, ‘said Seema Shah, Principal Asset Management Chief strategist’ 
The economic environment remains unstable while Wall Street gets used to varying policies. Some doubt is spreading over economic growth due to inflationary pressures, a mystery in trade, and less immigration. Big retailers, including Target and Best Buy, have hinted that tariffs will cost the consumer. As Trump’s policies emerge, labor market enters a high-pressure timeout, with businesses and workers preparing for turbulence ahead.
