The U.S. economy lost 92,000 nonfarm payrolls in February 2026, according to data released Friday by the Bureau of Labor Statistics.
The figure marked a sharp slowdown from January's downwardly revised 126,000 job gains and came well below economists' expectations of 59,000.
The unemployment rate surprisingly ticked up from 4.3% to 4.4%, above forecasts of 4.3%.
Meanwhile, average hourly earnings rose 0.4% month-over-month, matching January's pace and topping consensus estimates of 0.3%.
Employment in information and federal government continued to trend down.
Why US Non Farm Payrolls Fell In February
The February payroll decline largely reflects sector-specific disruptions and continued weakness in government and information-sector employment, rather than broad-based layoffs across the economy.
Health care employment dropped by 28,000 jobs, driven primarily by strike activity in physicians' offices, which lost 37,000 positions during the month.
Meanwhile, employment in the information sector fell by another 11,000 jobs, continuing a year-long contraction in the industry.
Federal government payrolls also declined by 10,000 jobs in February.
Since peaking in October 2024, federal employment has fallen by 330,000 jobs - an 11% decline.
Transportation and warehousing employment declined by 11,000 jobs in February, continuing a longer contraction. Since peaking in February 2025, employment in the sector has dropped by 157,000 jobs, or 2.4%.
Meanwhile, social assistance employment continued to expand, adding 9,000 jobs, driven by gains in individual and family services.
Most other major sectors - including manufacturing, construction, retail, financial services and hospitality - showed little change.
Market Reactions
U.S. equity indices extended declines during premarket trading on Friday, reflecting concerns that the U.S. economy may be entering a slower growth phase while price pressures remain elevated due to rising energy prices amid the war in Iran.
Contracts on the Dow Jones Industrial Average fell 1.2%, while those on the Nasdaq 100 and S&P 500 both dropped 1.5%.
WTI crude futures jumped over 7% to above $86 a barrel, after Kuwait announced oil production cuts due to disruptions at the Strait of Hormuz.
Gold - as tracked by the SPDR Gold Shares (NYSE: GLD) - inched 0.7% higher to $5,170 per ounce.