Federal and Private Sector Layoffs Fuel Economic Uncertainty

The U.S. job market remained strong in February with employers adding 151,000 jobs, according to the Labor Department. However, the unemployment rate edged up to 4.1%, and signs of trouble are emerging.

Health care, construction, and manufacturing sectors saw job growth, but the federal government announced the layoff of 10,000 positions. Wages rose by 4% compared to last year.

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So, on one side when wages are increasing the side layoffs are happening. The outplacement firm Challenger, Gray & Christmas reported that more than 172,000 job cuts were announced in February..

The private sector is also feeling the squeeze. Many Fortune 500 companies have announced layoffs, citing concerns over tariffs, trade uncertainties, and slowing growth forecasts.

“This is a significant spike in layoffs,” said Andrew Challenger, the firm’s senior vice president. “It’s surprising and something to watch closely.”

As the Trump administration pushes for major workforce reductions, experts warn that further job losses could create economic instability in the months ahead.

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