Hiring "unexpectedly plunged" in February, with the U.S. economy losing 92,000 jobs. Economists had forecast the economy to gain 60,000 new jobs. Unemployment increased to 4.4%. February's decline was "one of the largest since the pandemic," and in part was driven by a “decrease in health care employment due to strike activity.” Experts say the latest report suggests “lingering fragility in a labor market that was thought to be stabilizing.”
Jobs gains and losses, by sector:
Employment in health care decreased by 28,000 jobs due to strike activity.
Federal government employment "continued to trend down," losing 10,000 roles. The information sector lost 11,000 roles, as did the transportation and warehousing sector.
Social assistance "continued its upward trend in February," with 12,000 jobs added in individual and family services.
Unemployment ticked up:
Unemployment "edged higher," reaching 4.4%, up from January's 4.3%.
The number of long-term unemployed reached 1.9 million, up from 1.5 million year-over-year. The long-term unemployed "accounted for 25.3 percent of all unemployed people in February."
The labor force participation rate came in at 62.0%, little changed from the prior month.
Average manufacturing workweek edged down:
Average hourly earnings "rose by 15 cents, or 0.4 percent, to $37.32," while the average workweek for all nonfarm private payroll workers was "unchanged at 34.3 hours."
The average workweek for manufacturing workers “edged down by 0.1 hour to 40.1 hours.”
Jobs reports from prior months were revised down:
December's jobs report was "revised down by 65,000, from +48,000 to -17,000," while January's report was “revised down by 4,000, from +130,000 to +126,000.”
The report calls into question whether the labor market is actually steadying after the worst year for hiring outside of a recession in decades."
Read more via Bureau of Labor Statistics, CNN, Bloomberg
NOTE: The ADP Employment Report and the Bureau of Labor Statistics Jobs Report utilize different data, and therefore provide differing reports. ADP's report includes only private sector data.
According to ADP's latest National Employment Report, the U.S. private sector added 63,000 jobs in February. ADP's latest report suggests "hiring jumped in February, delivering the best showing for job gains since July 2025."
Construction, education and health services added jobs:
The education and health services sector added 58,000 jobs in February, while the construction sector added 19,000.
Professional and business services lost 30,000 jobs. Manufacturing roles declined by 5,000.
Job gains and losses by region and business size:
The biggest February gains were in the South (+37,000), while the West (+19,000) and Northeast (+11,000) also saw jobs added. The Midwest lost 4,000 jobs.
Small establishments with less than 20 employees saw gains of 58,000, while large establishments (500+ employees) gained just 10,000 jobs. Medium-sized businesses with 50-499 employees lost 7,000 jobs.
Pay premium for job changers hit a "record low":
For job-stayers, pay growth was "unchanged in February at 4.5 percent year-over-year."
Pay growth for job-changers "slowed to 6.3 percent."
We've seen an increase in hiring and pay gains remain solid, especially for job-stayers. But with hiring concentrated in only a few sectors, our data shows no widespread pay benefit from changing jobs."
Read more via ADP
U.S. employers announced 55% fewer job cuts in February, according to a new report by Challenger, Gray & Christmas.
Job cut announcements are down:
In February, "U.S.-based employers announced 48,307 job cuts," a sharp decline from the 108,435 cuts announced in January.
February 2026 job cuts are 72% lower than the 172,017 cuts announced in February 2025.
So far this year, U.S. employers have “announced 156,742 job cuts, the lowest January-to-February total since 2022.”
Sectors facing job cuts:
So far this year, there have been 31,700 job cuts announced in the transportation sector, "up 872% from the 3,261 cuts announced during the same period in 2025."
The number of job cuts announced in the technology sector increased from 22,000 in February 2025 to 33,300 in February 2026.
There were 5,400 announced job cuts in the education sector in February. Job cuts in the sector this year now total more than 6,200, a “96% increase from the 3,160 cuts announced through February 2025.”
Reasons cited for job cuts:
Store, unit and department closings led the way as the reason cited for job cuts, followed by market and economic conditions and restructuring.
AI was “cited for 4,680 job cuts in February, approximately 10% of total cuts for the month.”
Hiring plans are down 56% year-over-year:
Hiring plans increased by 140% in February to 12,755, up from just 5,306 in January.
February 2026 hiring plans are 63% lower than February 2025.
Read more via Challenger, Gray & Christmas
On February 28, 2026, the United States and Israel launched a coordinated joint military operation targeting key Iranian targets and sparking what is now a major regional conflict.
Iran has since retaliated with both missile and drone strikes against U.S. military assets and allied Gulf states across the Middle East, prompting concern about further escalation.
Americans have been urged to leave the region:
On March 2, the State Department urged Americans "across the Middle East" to "depart as soon as possible using all available transportation."
U.S. embassies in Saudi Arabia and Kuwait were closed and "nonessential staff" were being evacuated. The Canadian embassy in Riyadh, Saudi Arabia was also shuttered.
Airline and travel have been disrupted, leaving many stranded in the region:
Major airlines have "suspended or significantly curtailed flights" to and from the region, prompting corporate travel teams to "scramble for alternative routing."
Many governments (including both the U.S. and the U.K.) have issued "Do Not Travel" alerts for the region.
Thousands of travelers have "found themselves unexpectedly marooned in hotels, airports and on cruise ships in multiple countries" in the region. Germany said "30,000 German tourists were stranded on cruise ships, in hotels or at closed airports in the Middle East."
How are employers being impacted?
Financial firms including JPMorgan, Goldman Sachs and Citigroup have "told employees in the region to work from home."
Major law firms with operations in the Middle East are "quietly preparing evacuation plans" to ensure the safety of their workers. Firms have “instructed lawyers in the UAE and Saudi Arabia to work from home, citing safety concerns and business continuity.”
FedEx is focused on "minimizing disruption to its services" and has "implemented contingency measures to ensure business continuity."
The region is home to many large drugmakers, who say they are "taking stock of their local workforces’ safety and committing early to continued medicines access in neighboring countries struck by the unfolding conflict."
The travel sector is working "around the clock" to "support clients in Middle East." Industry representatives say the situation is “chaotic.”
Read more via The New York Times, Business Insider, Reuters, Dow Jones, MoneyControl.com, Associated Press, Fierce Pharma, PENews.com, Travel Weekly, Above the Law. American Lawyer
Australia: The country's "second-most-populous state" is considering offering its residents "the legal right to work from home." Beginning next year, workers in Victoria will be allowed to "do their jobs from home for two days a week." The plan is reportedly "divisive," with over 75% of Australians wanting "higher wages to return to full-time in-office work" and business owners calling the plan "economically damaging." (Semafor)
Germany: Manufacturing PMI increased to 50.9 in February, the "first expansion reading since June 2022." The increase was attributed to both increases in output and new orders and signals "improving factory operating conditions in Germany." (Reuters)
Japan: Japan's unemployment rate increased in January, "slightly higher than expected at 2.7%." Wage growth has "stalled at a 1.2% annual increase," following a "brief spike in late 2025." (VTMarkets)
