As the Trump administration began to cut federal labor, job growth was weaker than expected.
The Labor Department’s Bureau of Statistics reported Friday that non-agricultural wages increased by 151,000 seasonally adjusted 151,000, much better than January’s downward revised 125,000, but less than Dow Jones’ 170,000 consensus forecast. The unemployment rate is above 4.1%.
The report is the reason for the efforts of the Elon Musk government’s efficiency ministry to cut federal government efforts, starting with acquisition incentives, including massive shootings that affect multiple departments.
Although it may not feel completely lowered until the next few months, the effort begins to show. The BLS said that despite the overall government’s salary increase by 11,000, the number of federal employment fell by 10,000 in February.
Many of the Doge-related layoffs occur after the BLS investigation reporting period, which means that the report will not be included until March. Reported earlier this week, spending company challengers, Gray and Christmas reported, announced more than 62,000 layoffs amid Musk’s efforts.
Healthcare leads job creation, adding 52,000 jobs, which is consistent with its average 12 months. Other sectors that publish income include financial activities (21,000), transportation and warehousing (18,000) and social assistance (11,000).
On wages, average hourly earnings increased by 0.3%, although the annual growth of 4% is well below the 4.2% forecast.
After the report, stock market futures became higher and higher, while fiscal yields were lower.
The BLS report tracks the turbulent months of the market and economy.
Stocks have been pounding every day since President Donald Trump took office, and its actions depend on the rapid changes in tariff news. Meanwhile, Musk’s efforts through the door are reflected in the investigation showing high levels of worker anxiety.
However, February’s figures indicate that the labor market is stable. The number of jobs in December was revised to 323,000, an increase of 16,000, while the new January figure fell by 18,000 from previous estimates.
Although the report shows that work continues to grow, some details are less positive.
Labor force participation rate fell to 62.4%, the lowest level since January 2023 as the labor force dropped by 385,000. A broader measure of unemployment, including discouraged workers and workers in part-time positions for economic reasons, jumped half a percentage point to 8%, the highest level since October 2021.
Additionally, the Family Survey tells a different story showing 588,000 workers.
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