According to Bureau of Labor Statistics data, total nonfarm payroll employment fell by 92,000 jobs in February, below market expectations for a gain of 58,000. This followed a revised gain of 126,000 in January and a loss of 17,000 in December. Job losses were led by declines in healthcare (-28,000), information (-11,000) and federal government (-10,000), slightly offset by gains in social assistance (+9,000). The unemployment rate came in at 4.4%, slightly above market expectations of 4.3% and an uptick from 4.3% in January.
The ABA Office of the Chief Economist views this month’s job loss as evidence that the labor market is continuing to cool. The broad slowdown in hiring and the uptick in unemployment point to easing labor demand. Although the unemployment rate remains relatively low by historical standards, persistent weakening could begin to present risks to credit performance.
