U.S. Job Growth Faces Trade Policy Uncertainty Amid Rising Unemployment

U.S. job growth increased in February, but unemployment rose to 4.1%. Trade policy uncertainty and federal spending cuts threaten labor market stability. February saw 151,000 new jobs, but layoffs, stock market declines, and low consumer confidence signal economic challenges. Tariffs and immigration policy impact GDP estimates and Federal Reserve decisions.

In February, U.S. job growth showed signs of progress, yet the unemployment rate rose to 4.1%, hinting at deeper economic tensions. The Labor Department reported an increase of 151,000 nonfarm payroll jobs, a figure that, although promising, masks underlying challenges in the labor market.

Economists are voicing concerns over the volatile trade policy under President Trump's administration, which has injected uncertainty into business planning. Recent tariff measures have sparked fears of a trade war, potentially destabilizing markets and eroding improvements made since Trump's election victory.

In addition, layoffs in government roles and risky moves in sectors reliant on federal grants could exacerbate the situation. With projected GDP contractions and slowing consumer spending, the Federal Reserve might keep interest rates constant as they assess the patched eco-political landscape.

(With inputs from agencies.)