US job growth stable as government cuts start

Even before Donald Trump took office as president, financial analysts had been surprised at the long-running streak of growth in the US labour market, which came despite pressure from price increases and high interest rates.

In his first weeks, Trumps changes to US policy have added to pressures on the economy, generating widespread uncertainty.

His changes include tariffs on Americas top three trade partners, some of which have since been reversed, and cuts to federal jobs and spending, efforts that are facing challenges in the courts.

Polls indicate that the moves have the support of his base. But financial analysts have warned that they are contributing to worries in financial markets, hurting consumer sentiment and fuelling weakness across a range of other economic indicators.

A measure of manufacturing showed new orders dropping sharply last month. Retail sales posted their biggest drop in two years in January, while foot traffic at major chains such as Target, Walmart and McDonalds fell last month, according to data from tracking firm Placer.ai.

Private firm Challenger, Gray & Christmas reported that layoffs in February jumped to their highest level since July 2020, driven by government cuts.