Total nonfarm payroll employment edged down by 92,000 in February, marking the first monthly decline in over four years, the Bureau of Labor Statistics reported Friday. The unemployment rate ticked up to 4.4 percent from 4.3 percent in January, with the number of unemployed persons rising by 203,000 to 7.6 million.

Economists had anticipated modest job gains of around 50,000 to 60,000, making the report a significant downside surprise. Data for the prior two months were also revised lower: January payrolls fell from an initial 130,000 gain to 126,000, while December shifted from a 48,000 increase to a 17,000 loss. Combined, December and January employment gains totaled 69,000 fewer jobs than previously estimated.

Job losses were concentrated in a few sectors. Health care shed 28,000 positions, primarily in offices of physicians, which lost 37,000 jobs due to strike activity, though hospitals added 12,000. Employment in the information sector declined by 11,000, continuing a downward trend, while federal government payrolls fell by 10,000, extending a drop of 330,000 jobs, or 11 percent, since an October 2024 peak. Social assistance posted a gain of 9,000 jobs, led by individual and family services.

Average hourly earnings for private nonfarm employees rose 15 cents, or 0.4 percent, to $37.32 in February, with a year-over-year increase of 3.8 percent. The average workweek held steady at 34.3 hours. The labor force participation rate remained at 62.0 percent, and the employment-population ratio was little changed at 59.3 percent.

Household survey data incorporated updated population controls from the Census Bureau, which lowered the civilian noninstitutional population estimate by 231,000 for December 2025. This adjustment increased the number of persons not in the labor force by 1.2 million while reducing the labor force and employment levels, with minimal impact on the unemployment rate.

The report follows annual benchmark revisions released last month, which showed net nonfarm payroll growth for 2025 was nearly flat after subtracting nearly 900,000 jobs from prior estimates. January's initial reading of 130,000 jobs had signaled resilience earlier in the year.

Long-term unemployment, defined as 27 weeks or more, stood at 1.9 million persons in February, up from 1.5 million a year earlier and accounting for 25.3 percent of the unemployed. Persons working part-time for economic reasons fell sharply by 477,000 to 4.4 million.

The establishment survey, which counts payroll jobs, contrasts with the household survey's focus on individual labor force status. While payrolls declined, broader measures showed stability after population adjustments.