Blog Post date March 10, 2025
By Don Almeida- Mortgage Expert and President of Happy Home Mortgage
In February 2025, the U.S. economy added 151,000 jobs, a modest increase from January’s revised figure of 125,000 but falling short of the anticipated 170,000. Consequently, the unemployment rate edged up to 4.1% from the previous month’s 4%.
Sector-Specific Employment Trends
- Healthcare: The sector continued its growth trajectory, adding 52,000 jobs in February, consistent with its average monthly gain over the past year. Notable increases were observed in ambulatory health care services (+26,000), hospitals (+15,000), and nursing and residential care facilities (+12,000).
- Financial Activities: Employment rose by 21,000, surpassing the prior 12-month average gain of 5,000. Growth was primarily driven by real estate and rental and leasing (+10,000) and insurance carriers and related activities (+5,000). However, commercial banking experienced a decline of 5,000 jobs.
- Transportation and Warehousing: The sector added 18,000 jobs, aligning with its average monthly growth over the previous year. Significant contributions came from couriers and messengers (+24,000) and air transportation (+4,000).
Government Employment Dynamics
Federal government employment decreased by 10,000 positions in February. This decline is partly attributed to initiatives by the Department of Government Efficiency (DOGE), led by Elon Musk, aiming to streamline federal operations. Despite these federal reductions, overall government employment saw a net increase of 11,000 jobs, bolstered by gains at the state and local levels.
Wage Growth and Labor Force Participation
Average hourly earnings for all employees on private nonfarm payrolls rose by 0.3% to $35.93 in February, marking a 4.0% increase over the past 12 months. The labor force participation rate remained relatively stable at 62.4%, showing little change over the month and the year.
Economic Outlook
While the February jobs report indicates continued labor market growth, the slight uptick in unemployment and the underwhelming job additions suggest potential headwinds. Factors such as federal workforce reductions and evolving trade policies contribute to an environment of economic uncertainty. The Federal Reserve is anticipated to closely monitor these developments in its forthcoming policy deliberations.
Sources:
- Bureau of Labor Statistics: “The Employment Situation – February 2025”
- Reuters: “Policy uncertainty tests US labor market resilience”
- CNN: “The US economy added 151,000 jobs in February in first full month under Trump”
- Fox Business: “US economy added 151,000 jobs in February, below expectations”
- Bloomberg: “US Jobs Report Shows Evidence Labor Market Is Softening”
