92,000 jobs were lost in February, turbulent labor market continues: CEI analysis

The latest Bureau of Labor Statistics’ report shows 92,000 jobs were lost in February, indicating a turbulent labor market. Given today’s report, attention will remain on the president’s tariff and economic policies and the Federal Reserve’s next interest rate decision.

CEI research fellow Sean Higgins:

“The Labor Department’s report Friday that the economy shed 92,000 jobs in February and that December and January’s job numbers were revised downward by a combined 69,000 jobs is further confirmation that the current administration’s tariff policies have acted as a drag on job growth. Transportation and warehousing alone account for 11,000 of February’s losses. Even those not directly involved are affected: Businesses cannot plan or invest because they do not know what prices they can charge or what imports will cost them six months to a year from now. Not even a Supreme Court ruling is considered the final word on the matter.

“CEI has been warning that the recovery was weak: https://cei.org/news_releases/us-economy-added-64000-jobs-in-november-but-underemployment-and-stagflation-cause-concern-cei-analysis/

“Ironically, another factor is the administration’s effort to downsize the government, which accounts for 10,000 of February’s losses. The federal workforce has been reduced by 330,000, or 11.0 percent, since October 2024. For all of the controversy the Department of Government Efficiency stirred up, it was successful in its main goal and proved that government bloat can be significantly cut back, if the will to do it exists.”

CEI senior economist Ryan Young:

“February’s 92,000-job decline exposes more cracks in the labor market, especially after 2025’s jobs growth was the slowest in a non-recession year since 2003.

“While it is unreasonable to expect blockbuster jobs growth when an economy is already near full employment, it is reasonable to expect employment to at least hold steady. Policy uncertainty and growing federal intervention in the economy are preventing even those modest expectations from being met.

“While the Fed will likely hold interest rates steady at its next meeting in two weeks, this will raise pressure to lower them. Rising oil prices will put further pressure to lower rates, especially if the Iran war drags on longer than advertised, as wars often do. Meanwhile, inflation remains above target levels, which adds a note of caution to any stimulus the Fed might provide. The Fed has some tough decisions ahead.”