Washington, USA | Hiring at United States businesses unexpectedly declined in February, with employers cutting an estimated 92,000 jobs, according to new data released on Friday by the Bureau of Labor Statistics.
The report also showed that the unemployment rate rose slightly to 4.4%, up from 4.3% recorded the previous month, signalling a slowdown in the labour market.
Economists had projected that the US economy would add about 60,000 jobs in February, although analysts had already warned that hiring could cool after January’s stronger-than-expected performance.
Revised figures show that January’s job gains were adjusted down to 126,000 from the earlier estimate of 130,000, suggesting the labour market had already started losing momentum.
Analysts also attributed part of the February job losses to a mid-month strike by healthcare workers at Kaiser Permanente, which is estimated to have reduced employment figures by about 31,000 jobs.
However, the strike ended on February 23, meaning the workers’ return is expected to provide a temporary boost to employment figures in March.
Financial markets reacted negatively to the weaker-than-expected labour data.
Futures linked to the Dow Jones Industrial Average fell by 376 points (0.78%), while those tied to the S&P 500 dropped 0.83%. Futures for the Nasdaq-100 declined by about 1%.
At the same time, investors shifted toward safer assets, pushing two-year and 10-year US Treasury yields lower. The US dollar weakened against major currencies, while crude oil prices rose by 6.2% to about $86 per barrel.
Economists say the latest data will likely intensify debate about the strength of the US economy, with investors now closely watching upcoming employment and inflation reports for further signals on economic growth and interest rate trends.
This is a developing story….
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