US unexpectedly sheds 92,000 jobs in February, unemployment rises to 4.4%
Mar 7th 2026
Payrolls unexpectedly contracted by 92,000 in February and the unemployment rate climbed to 4.4%, with broad sector losses, downward revisions to prior months, and fresh questions for markets and the Federal Reserve.
- Payrolls fell by 92,000 in February, the largest monthly decline since October 2024.
- The unemployment rate rose to 4.4% from the prior month.
- Nearly every sector lost jobs, with healthcare hit by strikes and broad weakness across industries.
- Federal government employment dropped by 10,000 in February and is down 330,000 or 11% since October 2024.
- December and January job gains were revised lower by the Labor Department.
- Markets fell on the data and the report raises a dilemma for the Federal Reserve between easing for weaker hiring and guarding against energy-driven inflation.