US lost 92,000 jobs in February in surprisingly weak report

Hiring in February was surprisingly weak — complicating the path to interest rate cuts by the Federal Reserve as the conflict in Iran reheats inflation fears.US employment declined by 92,000 in February — a sharp slowdown from an increase of 126,000 in January and far below estimates of an added 50,000 jobs, the Bureau of Labor Statistics said Friday morning.The unemployment rate ticked up to 4.4%, from 4.3% the previous month, according to government data.“After lackluster job gains in 2025, the labor market is coming to a standstill,” Jeffrey Roach, chief economist for LPL Financial, said in a note Friday.“I don’t expect the Fed to act sooner than June, but if the labor market deteriorates faster than expected, officials could cut rates on April 29.”Meanwhile, January’s surprisingly strong report was likely helped by a few one-time factors, like slower holiday hiring at the end of last year — meaning fewer layoffs were necessary at the start of 2026.The Dow Jones Industrial Average tumbled 450 points, or nearly 1%, Friday, while the S&P 500 and Nasdaq fell more than 1%.Investors had been banking on a solid jobs report — but instead the weak numbers piled on top of inflation fears amid the ongoing conflict in Iran.National average gasoline prices soared to $3.32 a gallon, according to AAA, as Tehran cut off a vital maritime route for 20% of the world’s oil — and economists warned energy shocks could cause a broader ripple effect across consumer prices.Employment declines were felt across several industries, led by health care, which lost 28,000 jobs in February — largely due to a nurses’ strike in California and Hawaii that saw 31,000 workers walk out.Federal government employment declined by 10,000 in February, continuing to shed jobs after Elon Musk’s Department of Government Efficiency slashed government roles and foreign aid in early 2025.Since reaching a peak in October 2024, federal employment is down by 330,000 jobs, or ro...