The number of jobs in the US economy fell last month, an unexpected contraction that has renewed questions about whether the labour market in the US might be starting to crack.
Payrolls in the US dropped by 92,000 and the unemployment rate ticked up to 4.4%, according to the latest official figures, surprising analysts who had expected hiring to remain stable.
It marked the biggest monthly job loss since October, when the US government shut down, and came amid concerns that a jump in oil prices sparked by the US-Israel war in Iran could threaten growth.
Nearly every sector shed jobs including healthcare, typically a source of strength, which was hit by strikes last month.
Employment in the federal government also continued to drop, shrinking by 10,000 last month. Since hitting a peak in October 2024, federal government employment has dropped by 330,000, or 11%, the Labor Department said.
It also said job gains in December and January were lower than initially estimated.
The hiring downturn sent shares on Wall Street lower and raised new pressure on US President Donald Trump, who campaigned on promises of improving the economy.