The labor market showed signs of slowing in February, despite expectations of a more stable start to the year. According to the Bureau of Labor Statistics’ Employment Situation February 2026 release, the economy reported a loss of approximately 92,000 jobs, while the unemployment rate increased slightly to 4.4% from 4.3% in January. This came in below expectations, as economists surveyed by Dow Jones Newswires and The Wall Street Journal had anticipated job growth of 50,000 and a steady unemployment rate.

The report also included downward revisions to prior months, with January’s job gains revised from 130,000 to 126,000 and December 2025 adjusted from a reported gain of 50,000 to a loss of 17,000 jobs. As a result, 2025 became the first year since 2010 to record five months of job losses, a pattern last seen in the period following the global financial crisis.

The weakness in February was concentrated in specific areas. Healthcare employment declined, largely due to a major strike at Kaiser Permanente that temporarily impacted staffing levels. Job activity also softened in information technology, the federal government, and transportation and warehousing. In contrast, sectors such as manufacturing, construction, retail, financial services, and energy remained relatively stable.

At the same time, wage growth remained steady. Average hourly earnings increased 0.4% for the month and 3.8% year over year, both above forecast.

Data from ADP provides additional context. Private employers added 63,000 jobs in February, with most of the growth coming from companies with fewer than 50 employees—a shift from recent months. Mid-sized firms saw declines, while larger organizations reported modest gains, highlighting uneven hiring patterns across company sizes.

Overall, the data points to a slower and more uneven hiring landscape, reinforcing the need for employers to maintain focused and flexible workforce planning as uncertainty continues.