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U.S. Payrolls Fall 92,000 in February, Unemployment Rises to 4.4%

Sweeping benchmark cuts plus fresh Census-based weights recast last year’s strength as weakness.

Overview

  • Annual BLS benchmarking lowered March 2025 payroll levels by roughly 862,000 (898,000 seasonally adjusted), with December and January revised down a further 69,000.
  • New household survey population controls cut the employment-to-population ratio by 0.5 percentage point and turned a previously reported yearly employment gain into a 426,000 loss.
  • The three-month average pace of job growth is now roughly 6,000, with broad sector declines including health care where strikes weighed on payrolls.
  • Average hourly earnings rose 0.4% on the month and 3.8% year over year, keeping wage pressure elevated despite softer hiring.
  • Treasury yields and the dollar fell at first on the weak report before traders refocused on oil-driven inflation risks and the timing of potential Fed rate cuts.