Jobs Report Fails To Ease Concerns Over U.S. Economy

Investors are closely watching this week’s jobs report as concerns grow over the state of the U.S. economy, fears that have weighed on stocks in recent days.

Analysts fear that tariffs could worsen inflationary pressures, prompting the Federal Reserve to delay interest rate cuts.

In addition to the government’s employment report, key indicators this week include private-sector payroll data and initial unemployment claims for the previous week, Janet H. Cho and Matt Bemer reported for Barron’s Daily.

These reports come as Trump’s 25% tariffs on imports from Canada and Mexico are set to take effect, along with a 10% tariff increase on goods from China.

Analysts fear that tariffs could worsen inflationary pressures, prompting the Federal Reserve to delay interest rate cuts. The administration’s cost-cutting and job-reduction efforts will also be reflected in employment data.

Trump is set to outline his economic agenda during Tuesday’s State of the Union address, as Congress considers $2 trillion in spending cuts.

Key expectations for this week’s data:

• ADP Private Payrolls: Forecasted to show a gain of 148,000 jobs in February, down from 183,000 in January.

• Initial Jobless Claims (Week Ending March 1): Expected to rise to 243,000.

• Federal Reserve Beige Book (Wednesday): Will provide insights into hiring trends, economic activity, and business borrowing.

• February Jobs Report (Friday): Expected to show a 158,000 job increase, up from January’s figure.

• Unemployment Rate: Forecasted to remain at 4%, despite rising jobless claims.

• Average Hourly Earnings: Expected to rise 0.3%, slightly lower than January’s increase.

While investors remain hopeful for signs of economic stability, looming tariffs and uncertainty around the administration’s fiscal policies continue to create anxiety in the markets.