American employers unexpectedly cut 92,000 jobs last month, a sign that the labor market remains under strain. The unemployment rate ticked up to 4.4%.
The Labor Department reported that hiring deteriorated from January, when companies, nonprofits, and government agencies added a healthy 126,000 jobs.
Economists had expected 60,000 new jobs in February.
The surprisingly weak employment picture in February adds to the economic uncertainty over the war with Iran, which has caused oil prices to surge and saddled business and consumers with unforeseen costs.
“The job market is struggling in the face of so many headwinds,” said Heather Long, chief economist at Navy Federal Credit Union. “Companies are going to be even more reluctant to hire this spring until the war ends and they can see consumers still spending.”
The job market had been expected to rebound this year from a lackluster 2025 when the economy generated just 15,000 jobs a month.
Average hourly wages rose 0.4% from January and 3.8% from a year earlier.
The outlook for the job market – and the entire economy – is clouded by the war with Iran.
