The U.S. Bureau of Labor Statistics released new data Friday showing the U.S. added 151,000 nonfarm jobs last month and that the unemployment rate remained relatively stable at 4.1%.
Included in the unemployment level is the beginning of job losses because of fired federal workers, though the bulk of the federal job loss data from President Donald Trump cuts is not expected to start showing up until next month and beyond.
“Jobs are being added to the economy, but at a slower pace,” National Association of Realtors Chief Economist Lawrence Yun said in a statement. “The unemployment rate of 4.1% in February indicates a slight loosening in the tight labor market. The wage gain of 4% is outpacing the inflation rate of 3%, thereby raising the standard of living.”
Heritage Foundation Economist E.J. Antoni said much of the drop was due to workers leaving the labor market, raising the question of whether migrants leaving the U.S. under the new administration could be the reason for that.
“Well, that was a fast reversal – for the 1st time in 15 months, annual job growth among native-born Americans exceeded that of foreign-born workers,” Antoni said on X, referring to the new data. “Still a long way to go, but a very good start.”
Yun argued that some “cracks” in the economy are emerging.
“Temporary employment declined along with jobs in leisure and hospitality,” Yun said. “In other words, discretionary sectors, as opposed to necessity sectors, are facing challenges. The overall count of government jobs has increased ever so slightly. If mortgage rates decrease further due to weakening in the job market, home sales will likely rise. The influence of lower rates generally outweighs job losses. Ideally, adding jobs and decreasing mortgage rates would be preferable, but that scenario is more complex.”
