Job market stays resilient in February

Job market stays resilient in February

03.10.2025

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Job market stays resilient despite slowdown in February
Job market stays resilient despite slowdown in February

The labor market continued to add jobs in February, though at a slower pace than expected, with 151,000 new positions reported by the U.S. Bureau of Labor Statistics.1 This is slightly up from January’s 143,000 job gain, but less than the 170,000 jobs predicted.2 Unemployment is 4.1%, up from 4% in January.3

The report reflects a labor market that is cooling but not collapsing. Job growth remains positive, wages continue to rise, and certain industries — including healthcare and transportation — are still expanding. While hiring has slowed in some sectors, broader economic indicators suggest that the job market is transitioning to a more sustainable pace.4

Read more: Taking stock: Reassured by the February 2025 jobs report

Steady hiring in healthcare and transportation

Key industries continue to see demand for workers. Healthcare added 52,000 jobs in February, maintaining its status as one of the strongest employment sectors.5 Transportation and warehousing also expanded, adding 18,000 jobs.6 These industries have shown resilience, offering opportunities for job seekers even as hiring slows in other areas.

Wages continue to rise amid shifting job market

Earnings remained on an upward trajectory, with average hourly wages increasing 0.3% in February and 4% year-over-year.7 This growth continues to outpace inflation. 

The balance between wage growth and hiring trends will be a consideration in the months ahead. While companies are still adding jobs, many are taking a measured approach to workforce expansion.8

Read more: January 2025 jobs report reveals nuanced labor market shifts

Job market shifts, but layoffs remain low.

While some industries are experiencing slower hiring, large-scale layoffs remain rare. The technology sector, which saw aggressive hiring during the pandemic, has been adjusting, with some companies scaling back expansion plans. Similarly, the financial services industry has seen a shift toward stabilizing headcounts after periods of growth, although there were 21,000 jobs added in February, above the prior 12-month average gain of 5,000.9

There was a reduction of 10,000 jobs in federal employment, based on surveys from the second week of February. A broader picture of government job loss may come in later this spring.10

Outlook remains positive as economy stabilizes

While the pace of hiring isn't up to expectations, the broader economic picture remains stable. The Federal Reserve’s future decisions on interest rates will play a role in shaping labor market conditions, with potential rate cuts later this year providing additional economic support.11

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1 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” March 2025

2 CNBC, "U.S. payroll growth totals 151,000 in February, less than expected," March 2025

3 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” March 2025

4 Yahoo Finance, “February jobs report: US labor market adds 151,000 jobs, unemployment rate ticks up to 4.1%,” March 2025

5 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” March 2025

6 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” March 2025

7 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” March 2025

8 Hiring Lab, “Indeed’s 2025 US Jobs & Hiring Trends Report: What To Expect When You’re Expecting a Soft Landing,” December 2024

9 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” March 2025

10 The New York Times, “U.S. Hiring Holds Steady,” March 2025

11 Business Insider, “The US job market added fewer jobs than expected in February as unemployment unexpectedly rose,” March 2025

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The Currency editors

Staff contributors

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