Micah Jonah
March 6, 2026
The labour market in the United States recorded an unexpected decline in February as the economy lost 92,000 jobs while the unemployment rate rose to 4.4 percent, according to figures released by the US Department of Labour.
The latest data marks the sixth contraction in the job market since the administration of Donald Trump began.
Economists had earlier projected modest job gains for the month, with surveys conducted by Reuters, Bloomberg and Dow Jones forecasting increases between 50,000 and 59,000 jobs.
The unemployment rate increased slightly from 4.3 percent in January to 4.4 percent in February, with reports indicating that more than a quarter of unemployed Americans have been without work for over 27 weeks.
Data showed that the healthcare sector recorded the biggest job losses, shedding about 28,000 positions during the month. Federal government employment also declined with approximately 10,000 job cuts reported across the sector.
Meanwhile, industries affected by tariffs, including transportation and warehousing, lost about 11,000 jobs in February. The sector has reportedly lost about 157,000 jobs over the past year.
Other sectors such as construction, wholesale trade, retail as well as leisure and hospitality recorded little or no change during the period.
Despite a ruling by the US Supreme Court earlier in February striking down some import duties, President Trump introduced a new 10 percent global tariff policy and has indicated that the rate could increase to 15 percent.
The development comes ahead of the next policy meeting of the Federal Reserve scheduled for March 17 and 18, where economists expect the central bank to maintain its benchmark interest rate between 3.50 percent and 3.75 percent.
Financial markets reacted negatively to the labour report. Major US stock indexes declined during trading, with the Nasdaq Composite falling by about 0.8 percent, the S&P 500 dropping by 1 percent and the Dow Jones Industrial Average declining by 1.1 percent.
Economic analysts say the weakening labour market could increase pressure on the Federal Reserve to consider a rate cut later in the year if economic conditions continue to deteriorate.
