US shed 92,000 jobs, unemployment ticked up to 4.4% in February

The U.S. economy shed 92,000 jobs in February, a sign the labor market is still in low-hire mode as employers navigate economic and geopolitical uncertainty.

The U.S. economy shed 92,000 jobs in February, the Bureau of Labor Statistics estimated March 6, falling far short of forecasters' expectations, and signaling the overall labor market is still in low-hire mode as employers navigate tariff-related inflation pressures, AI adoption, and geopolitical uncertainty. 

The February estimate comes in much lower than the BLS’ now-revised gain of 126,000 jobs added in January, which was much higher than the agency’s revised figures for 2025, when U.S. employers added only 181,000 jobs throughout the entire year, or about 15,000 a month.  

Over the past year, economic output has continued to grow as job gains have slowed, implying higher productivity per worker. Thrivent Chief Financial and Investment Officer David Royal said AI may be contributing to productivity gains, but it’s still too early to attribute the entire divergence between GDP and employment to AI. 

“I don’t think companies really know the impact of AI on employment either,” Royal told USA TODAY. “They’re not ready to let people go, but they don’t want to hire a bunch of people because they’re not sure they’re going to need them, and I think that’s what’s driving the low-hire, low-fire environment.” 

The unemployment rate rose to 4.4% in February, up from 4.3% in January, and up from 4.1% a year ago. Bankrate Senior Economic Analyst Mark Hamrick noted ahead of the report that less immigration and an aging workforce mean fewer new jobs are needed to keep the rate steady.