US Employers Cut 92,000 Jobs in Surprise Decline

Unemployment rate rises to 4.4% as labor market remains under strain

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 rose to 4.4%. Revisions also cut 69,000 jobs from December and January payrolls. The job market had been expected to rebound this year, but the outlook is now clouded by the war with Iran.

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 have broader implications for the overall economy, which has been impacted by factors like President Trump's trade policies and high interest rates.

The details

Construction companies cut 11,000 jobs last month, likely due to frigid weather. 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. Employers have been reluctant to hire due to uncertainty over Trump's tariffs and the lingering effects of high interest rates.

  • The Labor Department reported the job losses on Friday, March 6, 2026.
  • The economy generated just 15,000 jobs per month in 2025.

The players

Donald Trump

The former President whose erratic tariff policies and high interest rates weighed on the 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 job losses in the sector.

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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 (ksgf.com)

The takeaway

The unexpected job losses and rise in unemployment rate highlight the continued challenges in the labor market, despite expectations of a rebound. Factors like trade policies, high interest rates, and the war with Iran have weighed on hiring, and companies may be hesitant to add workers as they invest in new technologies like AI.