In a sign of a still-softening labor market, U.S. employers eliminated 92,000 nonfarm payroll jobs in February, according to data released Friday by the U.S. Bureau of Labor Statistics (BLS). Economists say the report is unlikely to change the Federal Reserve’s stance on interest rates.
Meanwhile, the jobs numbers for December 2025 were downwardly revised from a gain of 48,000 jobs to a loss of 17,000 jobs, while January 2026 figures were trimmed by 4,000 to a total of 126,000 additions. With these revisions, combined job gains in December and January are 69,000 lower than previously reported.
The unemployment rate was little changed from January, rising slightly to 4.4%, with 7.6 million people unemployed.
Jobs growth “fizzled” in February, with “little evidence of renewed momentum in the labor market,” according to Sam Williamson, senior economist at First American.
“After January’s seemingly solid gain, the latest data argue against a re-acceleration in hiring and instead point to a labor market that remains soft, with the three‑month average slipping to just 6,000 jobs,” Williamson said.
Panorama Mortgage Group President Hector Amendola said the report is “relatively unreliable right now,” adding that feedback from workers and job seekers suggest that conditions remain difficult.
“The tight labor market and overall economic uncertainties stifle consumer confidence across the board, including confidence in making one of the most important, wealth building decisions many Americans will ever make — the decision to buy a home,” Amendola said in a statement.
“Right now, we desperately need job market improvements, along with stable prices, and more new home inventory priced for average Americans, to bring about sustainable growth in the housing market.”
Most of February’s job losses occurred in sectors like leisure and hospitality (-27,000), construction and manufacturing (-23,000), and health care and social assistance (-18,600). The federal government sector lost 10,000 jobs during the month, while education shed 16,000 jobs.
The real estate sector saw a modest increase in employment in February, gaining 6,100 jobs. Within construction, residential building construction added 2,400 jobs, while residential specialty trade contractors lost 9,500 jobs.
“Part of the decline reflects strike‑related disruptions that temporarily reduced payroll counts, suggesting some rebound as those workers return and are captured in upcoming reports,” Williamson said. “Declines elsewhere, however, point to broader caution among employers, with hiring slowing and payrolls being trimmed across a range of industries.”
While the Federal Reserve is closely watching labor market data, economists say February’s report is unlikely to change the central bank’s stance. The unemployment rate remains within full employment ranges and inflation is running above the central bank’s 2% target.
“Against that backdrop, the balance of risks remains tilted toward patience rather than urgency, though softer labor‑market data could still surface in the form of dissents from more dovish policymakers at the March Federal Open Market Committee meeting,” Williamson said.
Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association (MBA), said the job market is softening while inflation is expected to increase due to a spike in oil prices stemming from the war in Iran.
“Although this month’s job numbers were weaker than expected, we do not expect the FOMC to cut rates any time soon given the heightened inflation risk,” Fratantoni said. “MBA is sticking to its forecast that mortgage rates will remain in a range of 6% to 6.5% over the forecast horizon. A softer job market will be a headwind for housing demand as we enter the spring homebuying season.”
“February’s report suggests hiring remains cautious, which can weigh on housing turnover even when affordability is improving,” Zillow senior economist Orphe Divounguy said in a statement.
“If softer growth helps mortgage rates ease, that supports affordability — but households still need strong income growth and confidence in job security to list, buy, or move,” Divounguy added.
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