US loses 92,000 jobs in February, in surprise decline

The US economy unexpectedly lost jobs in February in a sharp reversal from the prior month, while unemployment edged up, government data showed Friday, in a shift that could fuel further labor market worries.

The world’s biggest economy shed 92,000 jobs last month, down from job growth of 126,000 in January, says the Labor Department.

The jobless rate, meanwhile, crept up to 4.4 percent from 4.3 percent.

The overall plunge in employment was driven by a drop in health care due to strike activity, the Labor Department says.

“Employment in information and federal government continued to trend down,” the report adds.

Economists had widely expected a sharp slowdown in job growth, although not an outright decline.

The figures are likely to add to concerns about the critical employment market, the strength of which had previously helped to prop up consumers and household spending.

February’s figures could also bolster the case for the Federal Reserve to resume lowering interest rates to shore up the economy.