The US economy added 151,000 jobs in February, falling short of economists’ expectations of 170,000, according to government data released Friday. It marked the first full month under President Donald Trump, offering an early glimpse into how his economic policies are playing out in the labor market ABC news reported.
A mixed jobs picture
While hiring picked up from January, it remained slightly below last year’s monthly average. The unemployment rate inched up to 4.1%, still near historic lows. Job gains were seen in health care, social assistance, and finance, but the federal government shed 10,000 jobs—a potential result of Trump’s push to shrink bureaucracy.
Despite the softer-than-expected report, Wall Street showed little concern. The Dow, S&P 500, and Nasdaq all saw early gains on Friday, recovering some ground lost earlier in the week amid market jitters over Trump’s aggressive tariff policies.
Tariffs and inflation loom over economy
The jobs report comes during a volatile economic stretch. Trump’s newly imposed tariffs have unsettled investors, with markets plunging Thursday before staging a partial recovery. Though the administration walked back some tariffs, uncertainty remains.
Meanwhile, inflation continues to challenge consumers. Prices rose 3% in January compared to a year ago, exceeding the Federal Reserve’s 2% target. Egg prices—a closely watched inflation indicator—soared 53% due to bird flu-related supply shortages.
Consumer confidence shaken
A February report from the Conference Board revealed the largest drop in consumer confidence since August 2021, with more Americans fearing a recession. A growing number expect a weaker job market, a falling stock market, and rising interest rates in the coming months.
Still, there were bright spots. Mortgage rates have fallen for seven straight weeks, dropping to 6.63% for a 30-year fixed loan—the lowest since December. More Americans are considering home purchases, signaling cautious optimism amid economic uncertainty.
What’s next?
With Trump’s policies—including spending cuts, federal job reductions, and tariffs—taking shape, future job reports will be closely watched. The president has made economic growth a key focus, but whether his approach will sustain strong hiring remains an open question.