The latest job report for February provides a comprehensive overview of the current state of employment in the United States. 

February’s Key Findings

The February 2025 jobs report from the U.S. Bureau of Labor Statistics highlights the increase in nonfarm payroll employment by 151,000 jobs. The unemployment rate held steady at 4.1 percent.

Key sectors include: 

• Healthcare
• Financial Activities
• Transportation & Warehousing
• Social Assistance

Sector-Specific Employment Changes

February saw job growth primarily in a handful of key sectors, highlighting the evolving demands across various industries.

Healthcare

The healthcare sector continued its positive trend, contributing 52,000 jobs, with significant gains in ambulatory healthcare services, hospitals, and nursing and residential care facilities. 

Financial Activities

Financial activities added 21,000 jobs, particularly in real estate, rental and leasing, and insurance carriers.

Transportation & Warehousing

In transportation and warehousing, employment grew by 18,000 jobs, driven by increases in couriers and messengers.

Social Assistance

Social assistance saw an uptick of 11,000 jobs, mainly in individual and family services. 

Other Sectors

The federal government's employment fell by 10,000 positions. Retail trade experienced a slight drop of 6,000 jobs, mainly due to a 15,000 job loss in food and beverage retailers from strike activity, offset by gains in warehouse clubs and supercenters. Employment in other major industries like mining, construction, manufacturing, and wholesale trade showed little change over the month.

Unemployment Rates

The household survey revealed that both the unemployment rate and the number of unemployed people showed little change in February, remaining at 4.1 percent and 7.1 million, respectively. The unemployment rate has been relatively stable, ranging from 4.0 to 4.2 percent since May 2024. Unemployment rates for various demographic groups saw minimal fluctuation, with the White population experiencing a slight increase to 3.8 percent. The number of long-term unemployed individuals, those jobless for 27 weeks or more, remained around 1.5 million, making up 20.9 percent of all unemployed people.

In February, the employment-population ratio saw a minor decrease to 59.9 percent. Meanwhile, the labor force participation rate held steady at 62.4 percent. The number of people working part-time for economic reasons rose significantly by 460,000, reaching 4.9 million. This increase was primarily due to reduced hours or the inability to find full-time positions.

The number of individuals not in the labor force who still desired employment grew by 414,000, totaling 5.9 million. Among these individuals, those marginally attached to the labor force remained around 1.7 million. The number of discouraged workers, who believe no jobs are available for them, decreased by 128,000 to 464,000.

Wage Growth & Average Workweek

In February, average hourly earnings for all employees on private nonfarm payrolls increased by 10 cents, or 0.3 percent, reaching $35.93. Over the past year, these earnings have risen by 4.0 percent. Private-sector production and nonsupervisory employees saw their average hourly earnings rise by 9 cents, or 0.3 percent, to $30.89.

The average workweek for all employees on private nonfarm payrolls remained steady at 34.1 hours. In the manufacturing sector, the average workweek was unchanged at 40.1 hours, with overtime edging up slightly to 2.9 hours. Similarly, production and nonsupervisory employees on private nonfarm payrolls saw their average workweek hold steady at 33.6 hours.

These figures indicate a stable trend in both earnings and hours worked across various sectors, suggesting consistent labor demand. This stability is further supported by revisions to past data, reflecting ongoing adjustments based on additional business and government reports.

Updates To Prior Months' Employment Data

The revisions to the employment data for December and January provide a more accurate picture of recent labor market trends. The total nonfarm payroll employment for December was adjusted upward by 16,000 jobs, changing the figure from an initially reported increase of 307,000 jobs to a revised increase of 323,000 jobs. Conversely, January's employment data saw a downward revision of 18,000 jobs, bringing the total from 143,000 jobs to 125,000 jobs.

These adjustments result from additional reports received from businesses and government agencies, as well as the recalculation of seasonal factors. The combined effect of these revisions for December and January is a net decrease of 2,000 jobs compared to previous estimates. This slight downward revision underscores the importance of continuous data updates and the impact of late reporting on the overall employment picture.

The adjustments reflect the Bureau of Labor Statistics' commitment to providing the most accurate data possible, enhancing our understanding of the labor market's performance over recent months. By taking into account these revisions, policymakers, economists, and other stakeholders can make more informed decisions based on the latest available information.

For further reading, check out our other blogs on topics related to the job market.

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