The Poor Employment Report for February

By SBE Council at 6 March, 2026, 1:00 pm

by Raymond J. Keating -

The February employment report was poor. There's no way around that fact.

In looking at the monthly jobs data, it must be kept in mind that the employment report features data from two surveys. As the BLS states: "The household survey measures labor force status, including unemployment, by demographic characteristics. The establishment survey measures nonfarm employment, hours, and earnings by industry."

Compared to the establishment survey, the household survey tends to better capture small business and startup activity, and other workers, including a host of workers not captured in the establishment survey, namely, the self-employed, unpaid family workers in family businesses, agriculture and related workers, private household workers, and those on unpaid leave.

Regarding the establishment survey, nonfarm payrolls in February declined by 92,000.

Meanwhile, the household survey pointed to a 185,000 decline in employment in February. In addition, the labor force participation rate fell slightly from 62.1 percent in January to 62.0 percent in February. That's off from 62.5 percent a year earlier and from 62.8 percent in late 2023 as well.

Source: Federal Reserve Bank of St. Louis, FRED

In addition, the employment-population ratio declined from 59.4 percent in January to 59.3 percent in February. A year earlier, the employment-population ratio stood at 59.9 percent, and it registered 60.4 percent in late 2023.

Source: Federal Reserve Bank of St. Louis, FRED

While there are numerous factors at work here, the direction on the labor force and employment fronts extends back, again, to late 2023 and raises additional concerns about the state of the economy.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of " The Weekly Economist " book series, and 10 Points from Walt Disney on Entrepreneurship .