WASHINGTON—The U.S. labor market unexpectedly weakened in February, with employers cutting 92,000 jobs and the unemployment rate rising to 4.4%, according to the latest report from the
.
Economists had broadly expected modest job growth, making the decline a sharp surprise and raising new questions about the strength of the economic expansion.
The payroll decline follows a gain of 126,000 jobs in January and marks one of the largest monthly job losses since the pandemic recovery. Analysts said the data suggests the labor market, which had been resilient through much of 2025, may now be cooling as employers respond to higher borrowing costs and slower global growth.
Several industries contributed to the decline. Healthcare employment fell by roughly 28,000 positions, largely reflecting strike activity among medical workers, while information services lost about 11,000 jobs and manufacturing employment dropped by about 12,000. Federal government employment also continued to trend lower.
Despite the job losses, wage growth remained relatively strong. Average hourly earnings rose 0.4% in February and were up 3.8% compared with a year earlier, suggesting that labor demand remains firm in some sectors even as hiring slows. Economists said the mixed data leaves the Federal Reserve in a wait-and-see position as policymakers weigh persistent inflation pressures against signs that the labor market may be softening.