US Employers Cut 92,000 Jobs in Surprise Decline

Unemployment rate rises to 4.4% as labor market remains strained

Published on Mar. 6, 2026

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American employers unexpectedly cut 92,000 jobs last month, a sign that the labor market remains under strain. The unemployment rate also rose to 4.4%, according to the Labor Department report.

Why it matters

The unexpected job losses and rise in unemployment rate indicate the labor market is still facing challenges, despite expectations of a rebound this year. This could signal broader economic concerns, especially as the country navigates the impact of the war with Iran.

The details

The Labor Department reported that hiring deteriorated from January, when companies, nonprofits and government agencies added a healthy 126,000 jobs. Economists had expected 60,000 new jobs in February. Revisions also cut 69,000 jobs from December and January payrolls. Construction companies cut 11,000 jobs last month, likely reflecting frigid weather, while healthcare firms shed 28,000 jobs after a four-week strike by more than 30,000 nurses and other front-line workers at Kaiser Permanente in California and Hawaii.

  • The Labor Department reported the job losses on Friday, March 6, 2026.
  • In January 2026, companies, nonprofits and government agencies added 126,000 jobs.
  • Economists had expected 60,000 new jobs in February 2026.

The players

Donald Trump

The former U.S. president whose erratic tariff policies and the lingering effects of high interest rates contributed to a lackluster job market in 2025.

Kaiser Permanente

A healthcare provider that experienced a four-week strike by more than 30,000 nurses and other front-line workers in California and Hawaii, leading to 28,000 job losses in the healthcare sector.

Andy Decker

The CEO of Atlanta-based Goodwin Recruiting, who said businesses needed 'a year to bake some of those costs into their business model, and now it's time to get back to growth mode.'

Joe Brusuelas

The chief economist at the tax and consulting firm RSM, who said the 'break-even point' for job growth is much lower now due to Baby Boomer retirements and President Donald Trump's deportations.

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What they’re saying

“We've invested an awful lot of money in (capital expenditures), and we need to see how much we can produce with our current labor force... The last thing you want to do is hire a lot of young people and then let them go.”

— Joe Brusuelas, Chief Economist, RSM (wbal.com)

“Businesses needed 'a year to bake some of those costs into their business model, and now it's time to get back to growth mode.”

— Andy Decker, CEO, Goodwin Recruiting (wbal.com)

What’s next

The impact of President Trump's trade policies and the ongoing war with Iran will continue to be closely watched as factors shaping the job market and broader economy in the coming months.

The takeaway

The unexpected job losses and rise in unemployment rate signal that the labor market remains strained, despite expectations of a rebound this year. This could indicate broader economic challenges, especially as the country navigates the impact of geopolitical tensions and the lingering effects of past policies.