NEW YORK — The U.S. economy added 151,000 jobs in February 2025, a solid gain though slightly below expectations.
Economists had forecasted a more modest increase, anticipating a slower pace of job growth due to seasonal adjustments and ongoing economic uncertainty. Despite the slower-than-expected growth, the unemployment rate remained steady at 4.1%, unchanged from the previous month.
Key highlights
February's labor market report, released by the U.S. Bureau of Labor Statistics, indicated steady job growth across various sectors, though the unemployment rate did not see significant changes. The number of unemployed individuals remained at 7.1 million, with long-term unemployment and part-time work for economic reasons continuing to reflect persistent challenges in the workforce.
The number of people not in the labor force but wanting a job rose by 414,000, suggesting that demand for work remains high, despite the broader economic uncertainties.
The unemployment rate fell to 4.1%, with approximately 7.1 million unemployed individuals. Joblessness was largely unchanged across most demographic groups, including adult men, adult women and minorities.
The number of long-term unemployed remained steady at 1.5 million, representing 20.9% of all unemployed.
Both the labor force participation rate (62.4%) and the employment-population ratio (59.9%) remained stable, continuing the flat trend observed in recent months.
The number of part-time workers increased by 460,000 and is at 4.9 million, indicating persistent challenges in securing full-time employment.
The 143,000 jobs added in January marked a slower pace than the monthly average of 166,000 in 2024.
Job gains in several sectors
Job growth in February was driven by sectors such as health care, financial activities, transportation and social assistance. Notably, health care added 52,000 jobs, financial activities gained 21,000, and transportation added 18,000 positions.
These trends show that while job growth continues, it's in line with more moderate expectations compared to the stronger figures seen in 2024.
Health care added 52,000 jobs, primarily in ambulatory health care services (+26,000), hospitals (+15,000) and nursing and residential care facilities (+12,000)
Retail trade changed little over the month (-6,000) and has shown little net change this year. In February, employment in food and beverage retailers declined by 15,000, largely due to strike activity. Warehouse clubs, supercenters and other general merchandise retailers added 10,000 jobs.
Social assistance increased by 11,000 jobs, primarily in individual and family services(+10,000).
Government lost 10,000 jobs, show casing a sharp decline in what was a steady increase month of month.
The mining, quarrying, and oil and gas extraction industry showed little change after January's decline.
Wages, work hours
Average hourly earnings increased by 10 cents to $35.93, marking a 4% increase year-over-year.
The average workweek for all private nonfarm employees was unchanged and remains at to 34.1 hours in January. The manufacturing sector showed little change in hours worked.
Looking ahead
The February employment report suggests a steady but moderate pace of job growth in the labor market. While sectors such as health care and financial services continue to show strength, challenges remain, particularly in areas such as long-term unemployment and underemployment.
As the economy adjusts, companies may need to be more strategic in their hiring practices, focusing on targeted recruitment while considering regional and seasonal variations in workforce availability.
