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Jobs report February 2025:

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Job growth was weaker than expected in February as the Trump administration began to slash the federal workforce.

Nonfarm payrolls increased by a seasonally adjusted 151,000 on the month, better than the downwardly revised 125,000 in January but less than the 170,000 consensus forecast from Dow Jones, the Labor Department’s Bureau of Labor Statistics reported Friday. The unemployment rate edged higher to 4.1%.

The report comes amid efforts from Elon Musk’s Department of Government Efficiency to pare down the federal government, starting with buyout incentives and including mass firings that have impacted multiple departments.

Though the reductions likely won’t be felt fully until coming months, the efforts are beginning to show. Federal government employment declined by 10,000 in February though government payrolls overall increased by 11,000, the BLS said.

Health care led the way in job creation, adding 52,000 jobs, about in line with its 12-month average. Other sectors posting gains included financial activities (21,000), transportation and warehousing (18,000) and social assistance (11,000).

On wages, average hourly earnings increased 0.3%, as expected, though the annual increase of 4% was a bit softer than the 4.2% forecast.

Stock market futures moved higher following the report while Treasury yields were lower.

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Economics

American cities are criminalising homelessness. Will that help?

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DAVINA VALENZUELA watches as sanitation workers heave most of her belongings into a garbage truck. The 33-year-old has been homeless for more than a year, and was sleeping in a dusty alley in central Fresno, the biggest city in California’s Central Valley. The truck devours bags of clothes, a stroller, a pile of hypodermic needles and around $120—much of it in change. Police officers arrest her and a friend and sit them in the back of a truck. They are given tickets for camping in a public place, which became a misdemeanour crime in September in an attempt to shrink the city’s homeless encampments. “That’s all I have right there,” she says, once her handcuffs are taken off. “I don’t know how I ended up here.”

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Economics

Pete Hegseth is purging both weapons and generals

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THE PENTAGON has been mired in chaos in recent months. Pete Hegseth, the secretary of defence, stands accused of mishandling classified information. Many of his aides have been let go over alleged leaks (accusations they deny). Top generals have been fired for no discernible reason beyond their colour or sex. The department is in “a full-blown meltdown”, says John Ullyot, a Hegseth loyalist who served as chief spokesman until April. Yet Mr Hegseth is pressing ahead with sweeping reforms that will change the size, shape and purpose of America’s armed forces.

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Economics

Where the Trump administration has science on its side  

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BACK IN JANUARY Donald Trump signed executive order 14187, entitled “Protecting Children from Chemical and Surgical Mutilation”. He instructed federally run insurance programmes to exclude coverage of treatment related to gender transition for minors. The order aimed to stop institutions that receive federal grants from providing such treatments as well. Mr Trump also commissioned the Department of Health and Human Services (HHS) to publish, within 90 days, a review of literature on best practices regarding “identity-based confusion” among children. The ban on federal funding was later blocked by a judge, but the review was published on May 1st.

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