The latest U.S. jobs report is out, and it isn’t pretty. The economy lost 92,000 jobs in February, missing expectations, as unemployment rose to 4.4%, according to data from the Labor Department. Economists had expected 60,000 new jobs in February.
“The headline number is bad, and after you dig into the details, it isn’t much better,” Appcast chief economist Andrew Flowers told Fast Company. “The shocking decline in employment in February was surely affected by a healthcare strike and government job cuts. But looking at private employment . . . still shows a decline of 58,000.” Flowers said it’s the worst jobs report since the COVID pandemic.
The report comes at a tough time for the Trump administration, as Americans are struggling with an affordability crisis driven by the high cost of living and mass corporate layoffs while President Trump is launching a costly war with Iran. That war is expected to cost U.S. taxpayers more than $890 million a day.
Oil and gas prices are up
The war is already starting to impact the price of gas at the pump. U.S. crude oil hit over $90 per barrel after Trump’s comments about Iran on Friday, and could top $100 a barrel in the future.
Meanwhile, Iran is retaliating against U.S. and Israeli strikes by attacking its Middle Eastern neighbors, including Kuwait, Saudi Arabia, Jordan, and the United Arab Emirates—pulling the region into an escalating conflict that now also includes Qatar and Bahrain, which host U.S. military bases.
Friday’s tough jobs report, which adds to the White House’s stressors, could put pressure on the administration to reconsider its costly military policy in the Middle East as Americans face economic concerns at home. However, Trump has shown no indication of this yet, posting on Truth Social on Friday: “There will be no deal with Iran except UNCONDITIONAL SURRENDER!”
Will there be more Federal Reserve interest rate cuts?
Friday’s jobs report could also have an impact at home on future Federal Reserve interest rate cuts, something the Trump administration has been pushing for.
“It’s high time for the Federal Reserve to cut interest rates and stop foolishly strangling America’s economic resurgence under President Trump,” White House spokesman Kush Desai told CNBC on Friday.
But the Fed wants to limit future cuts to contain growing inflation. It already cut rates three times last year.
“This jobs market report has got my attention,” San Francisco Federal Reserve Bank President Mary Daly told CNBC. “But I also don’t think you should make more of it than one month of data.” Daly said the report, coupled with inflation numbers and a weak labor market, complicates the Fed’s future decisions.