U.S. February Jobs Report Expected to Show Modest Gains Amid Economic Uncertainty

The labor market is projected to add 160,000 to 170,000 jobs, while federal spending cuts and trade policies raise concerns about future stability.

Economists predict February job growth of 160,000 to 170,000 and an unemployment rate holding steady at 4%, reflecting a still-resilient labor market.
Federal workforce cuts led by the Department of Government Efficiency (DOGE) have prompted a significant spike in layoff announcements, particularly in government, retail, and technology sectors.
Private-sector hiring slowed in February, with ADP reporting a net gain of just 77,000 jobs, down sharply from January's 186,000 increase.
Trade policy uncertainty, including new tariffs on key trading partners, and reduced federal funding are cited as potential headwinds for job growth in the months ahead.
Consumer confidence and spending have declined, with businesses adopting a cautious approach to hiring and investment due to economic unpredictability.