Book an
Email
Directions
Despite layoffs of federal workers over the last month, the labor market saw an increase in jobs in February, with 151,000 jobs picked up over the month. Analysts viewed this increase as strong given the layoffs, severe winter weather and other factors. However, consumer confidence declined following policy changes and low hiring levels for white-collar and remote jobs.
Over the last month, several industries saw job gains, with health care leading the increase by adding nearly 52,000 positions. The financial services industry saw an increase for the first time in months, adding roughly 21,000 jobs. Other industries that saw improvements were construction, transportation and warehousing. Meanwhile, industries like retail, leisure and hospitality and professional and business services industries all saw declines in February.
While steady job creation, low unemployment levels and infrequent layoffs have allowed for increased consumer confidence and a view that the labor market is in a good position, there are many factors that economists see as indication that confidence is actually on the decline. Consumer spending saw its biggest drop-off since February 2021, and new policies implemented by the current administration such as new tariffs on imports and federal grant freezes are expected to weigh on the economy.
In an article from The Washington Post, Guy Berger from the Burning Glass Institute shared how the policies may result in a more constrictive labor market. The same article noted that Federal Reserve policymakers have paused interest rate cuts in order to see how the economy will handle the policy changes. Notably, the incoming policy changes have impacted employer layoffs, with U.S. employers planning to cut over 172,000 jobs, a 245% increase from the previous month. This increase has likely been masked by the increase in jobs for other sectors outside of white-collar work.
Employers in white-collar and remote settings are hiring at the lowest levels since 2014, according to data from the Labor Department in January, and many individuals are struggling to find jobs even after months of searching and applying. With the potential for layoffs to increase, many people may be out of work and struggling to make ends meet.
If you have recently taken on increased debt burdens and are struggling to figure out your next step, the attorneys at Sader Law Firm are available to answer all questions and figure out what the best course of action might be for you. Contact us at (816) 561-1818 for a free phone consultation and learn more about what actions might be your best decision.
