US job growth stable as government cuts start

Published On Mar 7, 2025, 9:05 AM

The recent U.S. Labor Department report revealed a mixed picture for employment in February. Federal jobs dropped by 10,000, attributed largely to President Trump's cuts to the government workforce, but overall job additions were stable with 151,000 new jobs created across the economy. The unemployment rate rose slightly to 4.1%. Job growth was mainly in healthcare, finance, and manufacturing, signaling a cooling labor market but not drastically lower than expected. Analysts warn that the combination of federal layoffs, public spending cuts, and trade policy uncertainty may keep pressure on the economy.

Stock Forecasts

SPY

Negative

Given the cooling labor market and potential for continued job losses in the public sector, consumer sentiment could weaken, impacting retail performance and overall economic growth. Potential declines in spending may affect companies heavily reliant on consumer activity.

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The U.S. economy added 151,000 jobs in February as the labor market was cooler than expected ahead of the Federal Reserve's next monetary policy meeting later this month.

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