U.S. adds 151,000 jobs, but unemployment rises to 4.1%

The U.S. economy showed resilience by adding 151,000 jobs in February, according to the latest report from the Labor Department; however, the unemployment rate increased from 4% to 4.1%, suggesting underlying economic challenges. The jobs added fell short of the 160,000 economists expected, yet hiring was up from January's revised figure of 125,000, said Associated Press.

Sector-wise, growth was recorded in healthcare and finance, while the federal government shed 10,000 jobs. Despite these gains, the job market remains cautious due to President Donald Trump's trade policies and federal workforce reduction plans, AP News reported.

economic implications and market reactions

The job report comes amid economic uncertainty. Federal Reserve Chair Jerome Powell has noted that the U.S. economy remains in a solid state despite global trade tensions. The stock market reacted positively, with all major indexes posting gains after the jobs report release, even as investors remain wary about inflationary pressures, said ABC News.

Wage growth continues, albeit at a slower pace, with hourly earnings increasing by 0.3% in February. Economist Joe Brusuelas described the jobs report as a "Goldilocks" scenario—showing moderate growth that keeps inflation in check, according to Yahoo Finance.

The Fed is likely to maintain its wait-and-see approach, as inflation is slightly above its 2% target. Should employment numbers diminish or the unemployment rate continue to rise, pressure might mount on the Fed to reconsider rate cuts, as suggested by Fed Governor Chris Waller.

The outlook for the coming months remains uncertain, with ongoing debates around trade policies and federal budget cuts potentially affecting future employment and economic stability. Business sectors such as environmental technology express optimism, showing plans for hiring expansions despite the broader economic landscape, as reported by Associated Press.