US employers added 151,000 jobs last month; Unemployment up to 4.1%

WASHINGTON (AP) — U.S. employers added coagulated 151,000 jobs past month, but the outlook is cloudy arsenic President Donald threatens a commercialized war, purges the national workforce and promises to deport millions of immigrants.

The Labor Department reported Friday that hiring was up from a revised 125,000 successful January. The unemployment complaint roseate somewhat to 4.1%.

The occupation marketplace has been remarkably resilient implicit the past twelvemonth contempt precocious involvement rates.

“Despite rising concerns astir the wellness of the economy, momentum remains positive,’’ Lydia Boussour, elder economist astatine the taxation and consulting steadfast EY, wrote successful a commentary.

Billionaire Elon Musk’s purge of national workers was not expected to person overmuch interaction connected the February jobs numbers. The Labor Department conducted its survey of employers excessively aboriginal successful the period for the Department of Government Efficiency layoffs to amusement up.

The American occupation marketplace has remained remarkably resilient, but it has cooled from the red-hot hiring of 2021-2023. Employers added a decent mean of 166,000 jobs a period past year, down from 216,000 successful 2023, 380,000 successful 2022 and a grounds 603,000 successful 2021 arsenic the system rebounded from COVID-19 lockdowns.

Hiring continued contempt precocious involvement rates that had been expected to extremity the United States into recession. The economy’s unexpectedly beardown betterment from the pandemic recession of 2020 acceptable escaped an inflationary surge that peaked successful June 2022 erstwhile prices came successful 9.1% higher than they’d been a twelvemonth earlier.

In response, the Federal Reserve raised its benchmark involvement complaint 11 times successful 2022 and 2023, taking it to the highest level successful much than 2 decades. The system remained sturdy contempt the higher borrowing costs, acknowledgment to beardown user spending, large productivity gains astatine businesses and an influx of immigrants who eased labour shortages.

Inflation came down – dropping to 2.4% successful September -- allowing the Fed to reverse people and chopped rates 3 times successful 2024. The rate-cutting was expected to proceed this year, but advancement connected ostentation has stalled since summer, and the Fed has held off.

Economists expect that workers' mean hourly net roseate 0.3% past month, down from a 0.5% summation successful January, a driblet apt to beryllium welcomed by the Fed — but not capable to get the cardinal slope to chopped rates astatine its adjacent gathering March 18-19. In fact, Wall Street traders aren’t expecting different chopped until May, and they're not particularly assured astir that one, according to the CME Group’s FedWatch tool.

Economists accidental the economical outlook is increasing much uncertain arsenic Trump imposes — oregon threatens to enforce — a bid of taxes connected imported goods.

“Steep tariff increases could origin adjustments successful concern decisions with knock-on effects connected hiring and wages arsenic concern leaders navigate higher input costs and retaliatory measures,” Boussour said. “This could pb to a much terrible occupation slowdown, weaker income and restrained user spending amidst overmuch higher inflation.’’