The Bureau of Labor Statistics has released its February 2025 Report, so let’s take a look at how employment fared over the last month.
The great news is:
- Encouraging Trends Among Discouraged Workers – The number of discouraged workers, those who have stopped job searching because they believe no opportunities exist, declined by 128,000 to 464,000. This suggests more people are finding reasons to return to the job market.
- Upward Revisions for December Jobs Data – December’s job gains were revised up by 16,000 to 323,000, indicating the labor market was stronger than initially reported.
- Wage Growth Holding Steady – Average hourly earnings rose by 10 cents (+0.3%) to $35.93, reflecting a 4.0% year-over-year increase. Steady wage growth supports consumer spending and economic stability.
The good news is:
- Job Growth Continues – The U.S. economy added 151,000 jobs in February, showing continued resilience. While slightly below the 12-month average of 168,000, steady job creation is always a positive sign.
- Strength in Key Sectors – Employment gains were solid in several industries:
- Health care (+52,000) saw consistent growth across ambulatory services, hospitals, and nursing facilities.
- Financial activities (+21,000) outpaced the monthly average, driven by gains in real estate and insurance.
- Transportation and warehousing (+18,000) saw strong hiring in couriers and air transportation.
- Social assistance (+11,000) continued its upward trend, albeit at a slower pace than the yearly average.
- Long-Term Unemployment Unchanged – The number of long-term unemployed (jobless for 27+ weeks) remained stable at 1.5 million, showing no significant increase despite economic fluctuations.
The bad news is:
- Unemployment Rate Ticks Up Slightly – While the 4.1% unemployment rate remains low, it represents a slight increase within the narrow 4.0%–4.2% range seen since May 2024. The total number of unemployed individuals remains at 7.1 million.
- Increase in Involuntary Part-Time Workers – The number of people working part-time for economic reasons jumped by 460,000 to 4.9 million, suggesting that more individuals are struggling to find full-time employment.
- Federal Government Job Losses – Federal employment declined by 10,000 jobs, contributing to a net slowdown in overall job growth.
- Retail Struggles Persist – Retail employment was largely unchanged (-6,000), with food and beverage retailers losing 15,000 jobs, partially due to strike activity. However, warehouse clubs and general merchandise stores saw gains (+10,000).
Final Takeaway
The February 2025 jobs report paints a picture of continued economic resilience, albeit with signs of moderation. Job growth remains positive, wage increases continue, and discouraged workers are returning to the labor force. However, rising involuntary part-time employment and a slight uptick in the unemployment rate warrant close monitoring in the coming months.