The US economy unexpectedly shed 92,000 jobs in February, marking the largest monthly decline since the government shutdown in October. The unemployment rate ticked up to 4.4%, surprising analysts who had predicted stable hiring. The Labor Department's report revealed job losses across nearly every sector, including healthcare, which typically serves as a source of strength.

Federal government employment has dropped by 330,000 positions since October 2024, a decline of 11% following the expiration of pandemic-era hiring. The healthcare sector faced additional pressure from strikes last month. Economists had hoped hiring would accelerate after 2025's weak performance, but Samuel Tombs of Pantheon Macroeconomics said the latest figures shattered those expectations.

The report sent Wall Street shares lower and intensified pressure on President Trump, who campaigned on economic improvement promises. White House officials downplayed the significance, with National Economic Council Director Kevin Hassett predicting strong growth would drive job creation in coming months. The Federal Reserve now faces a dilemma: typically, a weakening labor market would prompt interest rate cuts, but concerns about oil price-driven inflation may complicate that response.