Amid Tariffs and Cuts: U.S. Job Market Faces Uncertain Path

U.S. job growth saw a rise in February with 151,000 jobs added, yet challenges loom. Trade policy uncertainties and federal spending cuts impact the labor market. The unemployment rate increased to 4.1%, and part-time employment rose, pointing to complexities in the economic landscape.

In February, U.S. job growth recorded a promising uptick, adding 151,000 jobs. However, emerging challenges threaten the labor market's stability. Trade policy uncertainties and deep federal spending cuts could impede economic growth, as reflected in the Labor Department's report—President Trump's first labor report in office.

Economists caution that inconsistent trade policies complicate business planning. Major Wall Street indexes have suffered this year, with the Nasdaq in correction territory. 'The economy is off to a slow start under the new president,' noted economist Christopher Rupkey, highlighting that massive federal workforce reductions could precipitate broader private sector job losses.

While industries like healthcare and financial activities added jobs, federal government employment saw a decline. Moreover, the economic landscape remains uncertain as tariffs imposed by President Trump provoke concerns, compounded by the Federal Reserve's interest rate adjustments and policy whiplash in federal funding impacting contractors and agencies.

(With inputs from agencies.)