February 2026 jobs report: US economy shed 92K jobs, well below expectations
The ‘Mornings with Maria’ panel reacts to February’s shocking job losses as payrolls fell by 92,000 and oil prices rose.
The US economy unexpectedly shed jobs in February as employers cut back to start 2026 amid economic uncertainty.
What are the key results of the February 2026 jobs report?
On Wednesday the Department of Labor reported that employers shed 92,000 jobs in February. This figure was well below the expectations of economists polled by LSEG, who estimated that the economy would add 59,000 jobs.
The unemployment rate was 4.4%, slightly higher than economists’ expectations of 4.3%.
In the revised payroll numbers for the past two months, the December report was revised up by 65,000 jobs from a gain of 48,000 to a loss of 17,000, while the January report was revised down by 4,000 from a gain of 130,000 to 126,000.
Combined, employment in December and January was 69,000 jobs lower than previously reported.
WHY DOES THE DEPARTMENT OF LABOR UPDATE JOBS REPORTS? HERE ARE 3 REASONS
Which sectors added or lost the most jobs in February 2026?
Private payrolls shed 86,000 jobs in February when economists had expected a monthly job gain of 65,000. January’s gain of 172,000 jobs was also revised down to 146,000.
Government payrolls gained 6,000 jobs in February. Federal (-10,000) and local government (-1,000) job losses were partially offset by job gains among state governments (+5,000). Federal employment fell by 330,000 jobs, or 11%, from its peak in October 2024.
The manufacturing sector lost 12,000 jobs in February, well below the expectations of LSEG economists, who had forecast a gain of 3,000 jobs.
Health care employment decreased by 28,000 jobs in February following an increase of 77,000 jobs in the sector in January. Doctors’ offices lost 37,000 jobs in February, mostly due to strikes, while hospitals added 12,000 jobs. Over the past 12 months, health care has gained an average of 36,000 jobs per month.
FED’S FAVORITE INFLATION GAUGE SHOWS CONSUMER PRICE GROWTH CONTINUED TO RISE IN DECEMBER
The information sector lost 11,000 jobs in February, continuing its decline after losing 5,000 jobs in the previous 12 months.
The construction sector lost 11,000 jobs in February after a gain of 48,000 jobs in January.
Social assistance employers added 9,000 jobs in February, driven by individual and family services (+12,000).
Employment in transportation and warehousing decreased by 11,000 jobs. The loss between couriers and couriers (-17,000) was partially offset by the gain in air transport (+5,000). Employment in this sector decreased by 157,000 jobs, or 2.4%, from the February 2025 peak.
The construction sector shed 11,000 jobs in February, possibly due to poor weather in some parts of the country. (Nick Oxford/Bloomberg via Getty Images)
US ECONOMY GROWS SLOWER THAN EXPECTED IN FOURTH QUARTER
What does the February 2026 jobs report mean for workers?
The number of long-term unemployed, defined as those who have been out of work for 27 weeks or more, was little changed at 1.9 million in February but rose from 1.5 million last year. The long-term unemployed accounted for 25.3% of all unemployed people in February.
The number of people employed part-time for economic reasons fell by 477,000 to 4.4 million in February. These people would have preferred to be employed full-time but were working part-time because their hours were reduced, or they could not find full-time jobs.
The US economy unexpectedly shed 92,000 jobs in February. (Joe Raedle/Getty Images)
What are the experts saying about the February 2026 jobs report?
“There are a few things that could have skewed February’s data: winter storms could explain the weakness in construction, for example, and nurses’ strikes could drag on health care,” said Elyse Ausenbaugh, head of investment strategy at JP Morgan Wealth Management.
“However, the pace of job gains over the past few months is still much slower than in 2024 and much of 2025 – this will make it difficult for the Fed to sell the story of a strengthening labor market that has been used to justify patience in further cuts. And you have a tricky, stagflationary mix of risks behind the Fed,” added Ausenbaugh.
FED DISSENT GROWS AS OTHER OFFICIALS CHOOSE A RETURN TO INTEREST RATE CONTINUES Amid Stubborn Inflation
Jeffrey Roach, chief economist at LPL Financial, said, “After the 2025 job deficit, the labor market will stagnate. The three-month average is 6,000 and the six-month average is the fourth worst in five months.”
“Looking ahead, we should expect the unemployment rate to rise. I don’t expect the Fed to act sooner than June, but if the labor market slows down faster than expected, officials could cut rates on April 29,” said Roach.
Federal Reserve Chairman Jerome Powell and central bank policymakers hold their next interest rate meeting on March 17-18. (Chip Somodevilla/Getty Images)
What does the February 2026 jobs report mean about the Fed and rate cuts?
The latest jobs data did little to change market expectations that the Federal Reserve will leave interest rates unchanged when policymakers meet on March 17-18.
The CME FedWatch tool shows a 95.5% probability that the Fed will leave the federal funds rate unchanged in its current range of 3.5% to 3.75%.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
What does the February 2026 jobs report mean for the stock market?
Markets opened lower on Friday and fell further on the back of the February jobs report before paring some of those losses as the trading session continued later in the morning.
After deep losses, the Dow Jones Industrial Average fell 1.27%, while the S&P 500 fell 1.1% and the Nasdaq Composite fell 0.92%.
