The US economy added 151,000 jobs in February, slightly below expectations of 160,000, according to data from the Bureau of Labor Statistics on Friday.
While job growth improved from the downwardly revised 120,000 added in January, analysts noted signs of a cooling labor market.
“This is one way to get the Fed to cut rates,” said Jamie Cox, managing partner at Harris Financial Group.
“The transition from a reliance on government propping up the economy to allowing the market to stand on its own feet will be a little bumpy. While strong, the jobs market will slow considerably with government in cutting mode.”
Markets reacted calmly to the report, according to Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management.
“Markets breathed a sigh of relief this morning that the jobs data wasn’t worse than expected,” he said. “It was largely in line, and although the unemployment rate ticked up slightly from 4.0% to 4.1%, that’s still a low number from a historical perspective.”
Zaccarelli added that despite ongoing volatility in policy decisions, his firm has maintained a cautious stance. “We’ve felt whipsawed by the on-again, off-again tariff news, but we’ve largely held the same course as we began 2025 with: very cautious, risk-off and concerned about valuations and concentration,” he said.
Gina Bolvin, president of Bolvin Wealth Management Group, also pointed to a measured response from financial markets.
“We were expecting the unemployment rate to tick up this year,” Bolvin said. “The markets should breathe a sigh of relief that there wasn’t a shock in either direction, and the report was a mixed bag. The takeaway is that wage data declined, which is disinflationary.”
The Federal Reserve is set to hold its next policy meeting in mid-March.