February Jobs Report: Solid, but Showing Signs of Softening
February Jobs Report: Solid, but Showing Signs of Softening
The February jobs report was a bit of a snoozer—solid, but not much drama. Employers added 151,000 jobs last month, a decent if unspectacular gain. The unemployment rate ticked back up to 4.1%, a bit above its recent lows but still low by historical standards. Revisions to the prior two months were minimal, leaving the overall picture largely unchanged.
A few signs of softening are emerging. The prime-age employment-population ratio dipped to 80.5%, a bit below where it was a year ago but still historically strong. More concerning is the recent shortening of the workweek: Average weekly hours held steady at 34.1, a level rarely seen outside of recessions. Before the pandemic, that figure reliably hovered between 34.3 and 34.6. That drop, combined with a rise in the number of workers forced into part-time jobs for economic reasons, suggests some employers are cutting back on hours rather than cutting jobs outright. That metric had improved in late 2024 but is now at its highest level since early 2021—though still low by historical standards.
Restaurants, in particular, are feeling the squeeze, shedding 27,500 jobs in February. That sector is struggling with the lingering effects of high inflation and high interest rates, which have made it harder for small businesses—many of which rely on credit card financing—to stay afloat. That’s a particular concern because restaurant jobs often serve as an entry point to the labor market.
Still, this looks like softening, not retrenching. The share of prime-age workers in the labor force held steady at 83.5%, just below its cyclical peak last year. Wage growth remains strong at 4.0% year over year, suggesting that demand for workers hasn’t collapsed. The Fed will likely welcome signs of a cooling job market, but policymakers will also be watching for signs that the softening is turning into something more serious.
Take a tour through the Jobs report in ZipRecruiter charts.
