Unemployment Rate Ticks Higher In February, US Economy Adds Fewer Jobs Than Expected

Zinger Key Points

• The US economy adds 151,000 jobs in February, below expectations of 160,000.
• The unemployment rate unexpectedly rises to 4.1%.

The February jobs report from the Bureau of Labor and Statistics, released Friday, showed a moderate increase in employment and also a slight increase in the unemployment rate. 

The U.S. economy added 151,000 jobs in February, up from a downwardly revised 125,000 in January, but below expectations of 160,000, as tracked by Trading Economics. The unemployment rate ticked unexpectedly higher to 4.1%, above the 4.0% expected. 

Unemployed individuals increased by 203,000 to 7.05 million, while employment declined by 588,000 to 163.31 million. The labor force participation rate fell to 62.4%, while the employment-population ratio dipped to 59.9%. 

Employment trended up in health care, financial activities, transportation and warehousing and social assistance. Federal government employment declined, possibly reflecting initial DOGE cuts. 

• Employment increased in health care (+52,000), financial activities (+21,000), transportation and warehousing (+18,000), and social assistance (+11,000).
• Federal government employment declined by 10,000.
• Average hourly earnings for all employees increased by 0.3% to $35.93, representing a 4.0% increase over the past 12 months.
• The average workweek remained unchanged at 34.1 hours

Market Reactions

Futures on major U.S. indices rose following the release of the jobs report. 

Gold climbed above $2,920 per ounce, approaching record highs. 

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Originally Posted March 7, 2025 – Unemployment Rate Ticks Higher In February, US Economy Adds Fewer Jobs Than Expected