U.S. Unemployment Rate Rises to 4.4% as Labor Market Loses Jobs

Hannah Price

March 6, 2026

Job seekers gather at a city job fair as signs advertise hiring, illustrating rising unemployment rate and a slowing labor market.

Washington, United States- The U.S. unemployment rate rose to 4.4% in February as the economy unexpectedly lost 92,000 jobs, according to data released Friday by the U.S. Department of Labor’s Bureau of Labor Statistics. The increase from 4.3% in January signals renewed strain in the labor market and arrives ahead of the Federal Reserve’s next policy deliberations.

Government data showed the number of unemployed people remained around 7.6 million during the month, while total nonfarm payroll employment declined across several industries. Officials said job losses were recorded in sectors including healthcare, construction, manufacturing and transportation.

The healthcare sector alone shed roughly 28,000 positions, partly reflecting strike activity involving medical workers, according to the Labor Department’s monthly employment report. Employment also continued to trend downward in information services and federal government jobs.

The February decline contrasts with January’s labor data, when employers added about 130,000 jobs and the unemployment rate edged down to 4.3%, indicating a modest improvement earlier in the year. Economists had widely expected job growth to continue, with forecasts pointing to a gain of roughly 50,000 to 60,000 positions.

Instead, the latest report marked one of the largest monthly job losses since early 2025 and added to evidence that hiring momentum has weakened after a sluggish 2025, when annual job growth was revised sharply lower. Analysts said the data could complicate policy decisions for the Federal Reserve as officials balance slowing employment against persistent inflation pressures.

Average hourly earnings continued to rise, increasing 3.8% from a year earlier, suggesting wage growth remains steady despite the downturn in hiring. Financial markets reacted cautiously following the release of the report, reflecting uncertainty about the broader economic outlook.

The February employment figures will likely be closely scrutinized by policymakers and investors in the coming weeks as they assess the strength of the labor market and the direction of interest rates.

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