US nonfarm payrolls fall sharply in February

The US nonfarm payrolls unexpectedly fell by 92K in February, compared to downwardly revised gain of 126K in January, while economists expected increase of 50K.

Unemployment rose to 4.4% last month from 4.3% in January and ticked above 4.3% forecast, while average earnings increased by 0.4%, unchanged from January.

Sharp drop in hiring and rise of unemployment adds to worries of further weakening of the US labor market that complicates position of the central bank amid the latest sharp rise of oil prices and threats of higher inflation.

The nonfarm payrolls remain in a downward trajectory since April 2025, with February’s drop marking the second largest decline in this period, when the labor sector was negatively impacted by President Trump’s import tariffs.

The downside risk for the labor market is expected to persist, as Trump introduced new tariffs after the US Supreme Court ruled out the whole previous packages, with strong negative impact also expected from escalation of war in the Middle East.