US economy shed 92K jobs in February, well below expectations

This story about the February 2026 jobs report is developing and will be updated with more details.

The U.S. economy shed jobs unexpectedly in February as employers pulled back to start 2026 amid economic uncertainty.

What are the key findings of the February 2026 jobs report?

The Labor Department on Wednesday reported that employers shed 92,000 jobs in February. That figure was well below the expectations of economists polled by LSEG, who estimated the economy would add 59,000 jobs.

The unemployment rate was 4.4%, slightly higher than economists’ expectations of 4.3%.

Revisions were made to the payroll numbers for the prior two months, with December’s report revised down by 65,000 jobs from a gain of 48,000 to a loss of 17,000, and January’s report revised down by 4,000 from a gain of 130,000 to 126,000.

Taken together, employment in December and January was 69,000 jobs lower than previously reported.

WHY DOES THE LABOR DEPARTMENT REVISE JOBS REPORTS? HERE ARE 3 REASONS

What sectors added or lost the most jobs in February 2026?

Private payrolls shed 86,000 jobs in February when economists expected a gain of 65,000 jobs for the month. January’s gain of 172,000 jobs was also revised down to 146,000.

Government payrolls contracted by 6,000 jobs in February. Job losses by the federal government (-10,000) and local governments (-1,000) were partially offset by job gains among state governments (+5,000). Federal government employment is down 330,000 jobs, or 11%, from its October 2024 peak.

The manufacturing sector lost 12,000 jobs in February, well below the expectations of LSEG economists, who predicted a gain of 3,000 jobs.

Healthcare employment declined by 28,000 jobs in February following an increase of 77,000 jobs for the sector in January. Physicians’ offices lost 37,000 jobs in February, primarily due to strike activity, while hospitals added 12,000 jobs. Over the last 12 months, healthcare averaged a gain of 36,000 jobs per month.

The information sector lost 11,000 jobs in February, continuing a downward trend after averaging a loss of 5,000 jobs in the last 12 months.

Social assistance employers added 9,000 jobs in February, driven by individual and family services (+12,000).

Transportation and warehousing employment declined by 11,000 jobs. A loss among couriers and messengers (-17,000) was partially offset by a gain in air transportation (+5,000). Employment in the sector is down 157,000 jobs, or 2.4%, from a February 2025 peak.

What does the February 2026 jobs report mean for the workforce?

The number of long-term unemployed, defined as those who have been jobless for 27 weeks or more, was little changed at 1.9 million in February but is up from 1.5 million a year ago. The long-term unemployed accounted for 25.3% of all unemployed people in February.