U.S. Loses 92,000 Jobs in February; Unemployment Rises to 4.4%
Contrary to expectations, the labor market cooled last month as war now rages in the Middle East
By Brian Pascus March 6, 2026 9:23 am
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Talk about a curveball.
The U.S. economy’s shaky story took another twist Friday morning amid negative jobs report data for the month of February that surprised economists and data forecasts alike.
U.S. employers cut 92,000 jobs last month, causing the unemployment rate to reach 4.4 percent, up from 4.3 percent in January, according to the Bureau of Labor Statistics (BLS).
This marks the third time in five months the U.S. has reported negative job growth, with recent revisions subtracting an additional 69,000 jobs, primarily from the softer December jobs report.
Economists from multiple outlets had expected a growth of 50,000 jobs and a stable unemployment rate at 4.3 percent, prior to the Friday BLS announcement.
For instance, human resources platform ADP had reported that private employers added 63,000 jobs in February.
Even as the health care sector has generated widespread hirings since 2025, the employment declines in February cut across several industries, especially in health care (which lost 28,000 jobs), information services (negative 11,000 jobs), and warehouse and transportation (down 11,000 jobs).
The numbers of jobs in construction, finance, professional services and hospitality held steady.
All told, the private sector lost 86,000 jobs in February, per U.S. government data.
Prior to Friday’s report, the economy had been characterized as a somewhat stable “low-hire, low-fire climate” environment, albeit one characterized by the threat of high bond yields, tariff tantrums, rising oil prices, persistent inflation, and sudden swings in the stock market — all of which are now under the cloud of the U.S. and Israel’s war with Iran.
The Dow Jones Industrial Average has fallen more than 2.5 percent since the U.S. bombed Iran on Saturday. Dow futures were down 400 points following the release of the jobs report at the time of publication.
At 4.4 percent, the unemployment rate is now creeping dangerously close to its five-year high of 4.5 percent, which it hit in November 2025 and last reached in October 2021; unemployment reached a 53-year low of 3.4 percent in April 2023, per BLS Data.
The number of people who are not currently working but who seek a job now stands at 6 million.
Brian Pascus can be reached at bpascus@commercialobserver.com.
