The Bureau of Labor Statistics (BLS) reported that the U.S. market added 151,000 jobs in February, falling short of economists’ expectations of 170,000. Despite the slowdown, the unemployment rate edged up slightly to 4.1%, remaining historically low. Hiring improved from January but lagged behind last year’s monthly average.
Job gains were concentrated in healthcare, social assistance, and finance. Meanwhile, the federal government slashed 10,000 jobs, reflecting the Trump administration’s cost-cutting measures.
The jobs report comes amid volatility in U.S. markets and trade relations following the administration’s recent tariffs. While President Donald Trump temporarily lifted some of the tariffs on Thursday, stock indexes tumbled. The Dow fell 1%, the S&P lost 1.7%, and the Nasdaq sunk 2.6%.
Although inflation remains a significant concern, it is nowhere near its peak of 9.1% from June 2022. Consumer prices rose 3% in January compared to the previous year, exceeding the Federal Reserve’s 2% target, which likely won’t be met until 2027.
The Conference Board Consumer Confidence Index declined by 7 points to 98.3, recording the sharpest decline since August 2021. Even more alarming, The Expectations Index, which is based on consumers’ short-term outlook, dropped 9.3 points to 72.9. This is the first time since June 2024 that this number has fallen below 80, which is the threshold figure that typically signals a recession.
Many Americans anticipate a recession within the next year and have expressed concerns over job security, stock market performance, and rising interest rates. Despite these challenges, some indicators offer a glimmer of optimism. Mortgage rates have declined for seven consecutive weeks, with the average 30-year fixed rate dropping to 6.63%, its lowest since December. Additionally, consumer sentiment toward current business conditions improved, and home-buying plans continued a steady recovery. However, with economic uncertainty persisting, small business owners and entrepreneurs must navigate shifting conditions carefully.
