U.S. Economy Adds 151,000 Jobs as Unemployment Rises to 4.1%

U.S. Economy Adds 151,000 Jobs as Unemployment Rises to 4.1%/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. economy added 151,000 jobs in February, showing continued labor market resilience despite economic uncertainty and rising unemployment, which ticked up to 4.1%, according to the Labor Department. Hiring improved from January’s 125,000 new jobs, but concerns linger over Trump’s trade policies, federal layoffs, and immigration crackdowns. Billionaire Elon Musk’s mass firings of government workers had not yet impacted February’s report, but economists warn that tariffs and labor shortages could slow future job growth.

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U.S. Job Market Report: Quick Look

• Jobs Added in February: 151,000 (up from January’s 125,000)
• Unemployment Rate: 4.1% (slightly higher than previous months)
• Federal Workforce Cuts: Layoffs not yet reflected in data
• Key Concerns:
  • Trump’s trade war and tariffs
  • Mass federal layoffs and hiring freezes
  • Uncertainty over Federal Reserve interest rate cuts
• Hourly Wage Growth: 0.3% increase in February (down from 0.5% in January)
• Economic Outlook: Potential slowdown due to rising costs and inflation concerns

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U.S. Economy Adds 151,000 Jobs as Unemployment Rises to 4.1%

Job Growth Continues, but Economic Uncertainty Looms: Deep Look

Steady Hiring Despite Rising Challenges

The U.S. labor market added 151,000 jobs in February, maintaining a moderate pace of growth despite higher interest rates and economic uncertainty. While job gains were higher than expected, the unemployment rate ticked up to 4.1%, suggesting that more people are entering the workforce or struggling to find jobs.

“The job market remains resilient, but economic headwinds are growing, particularly due to rising tariffs and labor disruptions,” said Lydia Boussour, a senior economist at EY.

Federal Workforce Cuts Yet to Be Reflected

Trump’s sweeping government layoffs, driven by the Department of Government Efficiency (DOGE) and backed by Elon Musk, are expected to impact future reports. The Labor Department conducted its employer survey too early in the month to capture these cuts, which could show up in March or April’s employment data.

The Impact of Interest Rates and Inflation

The Federal Reserve’s rate hikes over the past two years were aimed at controlling inflation, which hit 9.1% in mid-2022 but dropped to 2.4% by late 2024. Although rate cuts began in 2024, inflation has since stalled, leading the Fed to pause further reductions.

• Average Hourly Earnings: Increased 0.3% in February (compared to 0.5% in January)
• Fed’s Next Move: No rate cuts expected at the March 18-19 meeting

Trump’s Trade Policies and Job Growth Concerns

Economists warn that Trump’s tariffs on imports from Canada, Mexico, and China could raise costs for businesses, impacting hiring and wages.

“Steep tariff increases could cause adjustments in business decisions, leading to a weaker job market, lower incomes, and reduced consumer spending,” Boussour said.

• Key Economic Risks:
  • Tariff-driven inflation increases costs for businesses and consumers
  • Companies delay hiring or wage increases due to trade uncertainty
  • Retaliatory tariffs from trading partners could reduce U.S. exports

Outlook for 2025: Will Job Growth Continue?

• The job market remains strong but could cool down due to economic uncertainty.
• The Federal Reserve may delay rate cuts, keeping borrowing costs high.
• Federal layoffs, trade tensions, and economic policy shifts could slow hiring further.

Economists say March and April’s job reports will provide a clearer picture of how Trump’s tariffs and government downsizing will affect the economy.

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