US hiring falls short of expectations in 1st full month of Trump term
The U.S. added fewer jobs than economists expected in February, the first full month under President Donald Trump, according to government data released on Friday.
Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.
The stock market appeared to shrug off the solid, albeit disappointing report. Each of the three major stock indexes ticked up on Friday, recovering some of their losses a day earlier.
Hiring picked up from January but fell slightly below the average number of jobs added each month last year.
Speaking hours after the data release, Fed Chair Jerome Powell affirmed the strength of the U.S. economy.
"Despite elevated levels of uncertainty, the U.S. economy continues to be in a good place," Powell said at the annual U.S. Monetary Policy Forum in New York City. "The labor market is solid."
Employment increased in a range of sectors, including health care, social assistance and finance, data showed.
However, the federal government shed 10,000 workers in February, indicating potential impact from employee cuts initiated by the Trump administration.
The fresh jobs report arrives during a turbulent period for U.S. stocks and trade relations in the aftermath of tariffs issued by the Trump administration earlier this week.
Despite the temporary withdrawal of some tariffs on Thursday, stocks dropped as fallout from the policy continued to roil markets.
The Dow Jones Industrial Average on Thursday tumbled about 425 points, or 1%, while the S&P 500 fell 1.7%. The tech-heavy Nasdaq sank 2.6%.
The tariffs stand among a flurry of economy-related directives issued since Trump took office, including spending cuts and the targeting of diversity, equity and inclusion initiatives.
The Trump administration has also terminated tens of thousands of federal employees, though such cuts are not expected to appear fully in the February report, in part due to the timing of surveys conducted by officials who collect the data.
Meanwhile, the economy is weathering a bout of resurgent inflation that stretches back to the final months of the Biden administration.
Consumer prices rose 3% in January compared to a year ago, registering a percentage point higher than the Federal Reserve’s target of 2%.
Egg prices, a closely watched symbol of rising costs, soared 53% in January compared to a year ago. Bird flu has decimated the egg supply, lifting prices higher.
In February, a key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said last month.
The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.
Still, some measures of consumer sentiment improved. Consumers’ assessment of current business conditions moved higher, while an uptick in purchasing plans for a home extended a monthslong recovery.
Mortgage rates have dropped for seven consecutive weeks, FreddieMac data showed. The average rate for a 30-year fixed mortgage stands at 6.63%, its lowest level since December.
