The job market just delivered a reality check.
Instead of the job gains economists were expecting, the U.S. economy lost 92,000 jobs in February, according to new federal data. Forecasters had predicted employers would add about 50,000 jobs. The unemployment rate also ticked up to 4.4%, signaling the labor market may be cooling after several years of strong hiring.
The weaker-than-expected report comes as businesses face a mix of economic uncertainty and rapid technological change that is beginning to reshape hiring across several industries.
One bright spot in the report was wages. Average hourly earnings for private-sector workers rose by 15 cents in February, continuing a recent trend of steady wage growth that has helped many workers keep pace with inflation.
The federal government workforce continued shrinking, shedding another 10,000 jobs last month. Since October, federal employment has declined by roughly 333,000 positions, reflecting ongoing efforts to reduce government payrolls.
And the job losses weren’t limited to just one corner of the economy.
Healthcare, which saw strong hiring in January, lost 28,000 jobs, with strike activity cited as the primary driver behind the decline.
Transportation and warehousing also fell by 11,000 jobs, concentrated among couriers and messengers — a category that includes major delivery companies such as UPS and FedEx. UPS recently announced plans to reduce its workforce as part of a broader restructuring effort.
The information sector, which includes telecommunications companies, cloud services, digital media, and publishing, also declined by 11,000 jobs.
Some areas did see modest gains. Social assistance, which includes services supporting families, children, seniors, and vulnerable populations, added 9,000 jobs in February.
Meanwhile, employment in construction, manufacturing, retail, financial services, and hospitality showed little change during the month.
In short, the hiring boom may finally be slowing down.
Economists and employers say a mix of economic uncertainty, automation, and rapid advances in artificial intelligence is increasingly shaping hiring decisions across the economy.

Top view of warehouse worker using laptop to check location of goods.

The Job Market Delivers A Surprise Economists Didn’t See Coming

Economy

Jobs

Politics

Unemployment

Wages

In April, President Trump imposed global reciprocal tariffs on the United States’ trading partners, invoking his authority under the International Emergency Economic Powers Act of 1977, to address the national <a href="https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/">emergency</a> posed by the large and persistent trade deficit” driven by the lack of reciprocity in the country’s trade relationship.
President Trump also wanted to see jobs and factories come “<a href="https://www.business-standard.com/world-news/trump-wants-us-to-make-things-again-but-is-it-ready-for-the-challenge-125060400675_1.html">roaring back</a>” to the United States.
The idea that the United States can become a manufacturing powerhouse is an attractive one, to politicians on both sides of the aisle. After all, who would not be in favor of economic revitalization, new jobs, improved security, and economic independence? However, America’s ability to establish manufacturing dominance faces insurmountable challenges… unless we are smart about the industries we “bring home.”
Historically, the United States has never been a true manufacturing superpower.
Manufacturing employment in the United States peaked in 1979, with nearly 20 million workers employed in the “manufacturing sector.” Over the next four decades, manufacturing entered a structural decline, and the United States transitioned to a service-oriented economy. By 2020, “the <a href="https://www.blackrock.com/us/financial-professionals/insights/exploring-us-manufacturing#:~:text=In%201979%2C%20U.S.%20employment%20in,a%20more%20service%2Doriented%20economy.">service</a> sector dominated the economy,” accounting for 79% of the nation&#8217;s Gross Domestic Product, up from 52% in 1950, and represented 80% of the nation’s total employment. In 2025, fewer than 13 million <a href="https://nam.org/mfgdata/facts-about-manufacturing-expanded/">workers</a> were in the manufacturing sector.
The challenges for the United States to become a manufacturing superpower are many and complex.
First, the country simply does not have the labor pool to do so. The <a href="https://www.cnbc.com/2025/06/04/adp-jobs-report-may-2025-.html">unemployment</a> rate in May 2025, the latest data available, was approximately 4.2%, near full employment.
The labor <a href="https://www.dol.gov/agencies/wb/data/widget">participation</a> rate is running at 62.6%, which is well below the 67+ percent <a href="https://www.statista.com/statistics/191734/us-civilian-labor-force-participation-rate-since-1990/">rate</a> seen in the late 1990s and early 2000s, but not low enough to indicate there is a bench of workers waiting to enter the job market and join the manufacturing sector.
In addition, our labor force is one of the highest-paid in the world. In the United States, the average hourly <a href="https://www.bls.gov/news.release/empsit.t24.htm">wage</a> of a “nonsupervisory manufacturing employee” is approximately $28.80. In 2020, that wage was approximately $6.50 per hour in <a href="https://www.china-briefing.com/news/reshoring-from-china-to-mexico-how-prevalent-is-it-really/#:~:text=The%20hourly%20wage%20for%20manufacturing,over%2012%20percent%20from%202019.">China</a> and $4.82 in Mexico. In <a href="https://www.statista.com/statistics/744071/manufacturing-labor-costs-per-hour-china-vietnam-mexico/#:~:text=A%20difference%20in%20earnings,and%20Vietnam%20for%20cheaper%20labor.&amp;text=Log%20in%20or%20register%20to%20access%20precise%20data.">Vietnam</a>, the average hourly wage in manufacturing is $3.10.
We simply do not have the workers to compete with less developed nations, and those we do have make too much money to make America competitive with them.
The only answer would be to open our borders and import foreign workers to fill manufacturing openings at suppressed wages. This is something that President Trump rightly opposes, as it would change the make-up of the United States, to the detriment of our national identity.
So, what are we to do?
The United States can reshore its manufacturing, but must do so on a limited, prioritized basis. We should not care where our tennis shoes, blue jeans, or T-shirts are manufactured. Those industries hold no vital interest to the United States.
However, we should prioritize the reshoring of industries such as pharmaceuticals, computer chips, drones, and food additives.
“Approximately 40% of finished pharmaceutical products and 80% of active drug ingredients sold in the U.S. are manufactured overseas, <a href="https://www.gao.gov/products/gao-20-262t">according to a report by the GAO</a>. This includes a significant portion of generic drugs, with roughly 80% being produced overseas.”
China controls 80% of the <a href="https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/a-global-strategy-to-secure-uas-supply-chains/">drone</a> market in the United States.
83% of <a href="https://www.csis.org/analysis/strategy-united-states-regain-its-position-semiconductor-manufacturing#:~:text=And%20as%20to%20semiconductors%2C%2083,capacity%20is%20now%208%20percent.">semiconductors</a> are manufactured outside of the United States.
As a free market capitalist, I do not like the government picking “winning industries,” but there is a national security aspect to consider, and President Trump is doing this.
The <a href="https://www.foxnews.com/media/pulling-billions-from-harvard-fund-trade-schools-heres-what-people-saying-about-trumps-latest-move">president</a> recently floated the idea of taking the $2.2 billion in frozen assets from Harvard University and using that money to fund trade schools, where people could learn to support the manufacturing that is in the nation’s vital and national interests.
At the end of the day, the United States will never become a manufacturing superpower. Our cost structure and standard of living are simply too high… and that is a good problem to have.
However, we must focus on reshoring those industries that are vital to our national defense and our national interests. With the right focus and incentives, we can quickly achieve this strategic goal and free ourselves from our competitors’ supply chain whims.
* * *
Jim Nelles is a Navy veteran and supply chain consultant based in Chicago. His articles have appeared in the Washington Examiner, Newsweek, Foxnews.com, and The Daily Wire. He has served as a chief procurement officer, chief supply chain officer, and chief operations officer for multiple companies.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.
<a href="https://get.dailywire.com/gift/?utm_medium=website&amp;utm_source=wisepops&amp;utm_campaign=dad&amp;utm_content=fathersdaygiftpopups">Gift Dad an All Access Membership. Use code DAD40 at checkout to save 40%!</a>

Inside A General Motors Assembly Plant Ahead Of Earnings Figures

‘Roaring Back’: Here’s How To Reshore Manufacturing The Right Way

'Roaring Back': Here’s How To Reshore Manufacturing The Right Way

Auto workers

China

Free Trade

Labor Unions

Opinion

President Trump

Steel workers

Supply Chain

Tariffs

Major <a href="https://www.dailywire.com/topic/hollywood" target="_blank" rel="noopener">Hollywood</a> film and television studios accused union actors striking against the industry of continuing to &#8220;mischaracterize the negotiations&#8221; while claiming more than $1 billion in higher compensation and enhanced benefits were offered to the performers.
SAG-AFTRA voted to join an ongoing Writers Guild of America (WGA) strike after union negotiators failed to reach an agreement on a new three-year contract last week with the Alliance of Motion Picture and Television Producers (AMPTP).
&#8220;The deal that SAG-AFTRA walked away from on July 12 is worth more than $1 billion in wage increases, pension and health contributions and residual increases and includes first-of-their-kind protections over its three-year term, including expressly with respect to AI,&#8221; the AMPTP, which represents several studios including Netflix, Walt Disney Co., and Warner Bros Discovery, told <a href="https://www.reuters.com/world/us/hollywood-studios-say-they-offered-actors-1-bln-gains-before-strike-2023-07-18/" target="_blank" rel="noopener">Reuters</a> in a statement.
&#8220;For SAG-AFTRA to assert that we have not been responsive to the needs of its membership is disingenuous at best,&#8221; the group added.
The contract reportedly aimed to negotiate higher benefits and limits on using artificial intelligence to recreate actors&#8217; likenesses without their permission or paying them — a major point of contention for many of the 160,000 SAG-AFTRA members.
SAG-AFTRA officials proposed the members, who they say are &#8220;fighting for the survival of our profession,&#8221; receive an 11% general wage increase in the first year of the contract to make up for inflation, but were countered with a 5% offer from the union.
&#8220;We moved on some things, but from day one they wouldn&#8217;t meaningfully engage on the most critical issues,&#8221; SAG-AFTRA said.
During a <a href="https://www.dailywire.com/news/egregious-and-disgusting-screen-actors-guild-pres-unloads-on-latest-offer-from-producers" target="_blank" rel="noopener">press conference</a> last week, SAG-AFTRA President Fran Drescher held nothing back in her response to the latest offer from the group representing the studios, calling it &#8220;egregious and disgusting.&#8221;
<a class="c-link c-link--focus-visible" href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" data-stringify-link="https://onelink.to/dwapp" data-sk="tooltip_parent" aria-describedby="sk-tooltip-7029">CLICK HERE TO GET THE DAILY WIRE APP</a>
&#8220;A moment when streaming and AI and digital is so prevalent in the industry, it has disemboweled the industry that we once knew,&#8221; Drescher said. &#8220;When I did &#8216;The Nanny&#8217; and everybody was part of the gravy train. Now it&#8217;s a walled-in vacuum. And not only is it unfair to everybody up and down the ladder, but the entity that employs us, it&#8217;s really un-American and it&#8217;s unconscionable.&#8221;
Actor George Clooney <a href="https://www.theguardian.com/culture/2023/jul/18/hollywood-stars-actors-strike-sag-aftra" target="_blank" rel="noopener">reportedly</a> called the historic strike &#8220;an inflection point&#8221; for the Hollywood industry.
&#8220;Actors and writers in large numbers have lost their ability to make a living,&#8221; Clooney said. &#8220;For our industry to survive that has to change. For actors that journey starts now.&#8221;
Academy Award-winning actor Matt Damon also weighed in on the union strike.
&#8220;Nobody wants a work stoppage but if our leadership is saying that the deal isn&#8217;t fair then we gotta hold strong,&#8221; Damon said. &#8220;It&#8217;s the difference between having healthcare and not for a lot of actors, and we gotta do what&#8217;s right by them.&#8221;
The historic double strike marks the first time actors and writers have protested together since the 1960s.
Virginia Kruta contributed to this report.

SAG-AFTRA Members Walk The Picket Lines Amid Actors’ Strike

Actors ‘Walked Away’ From $1 Billion In Gains Before Historic Strike, Hollywood Studios Say

Actors 'Walked Away' From $1 Billion In Gains Before Historic Strike, Hollywood Studios Claim

Artificial Intelligence

Hollywood

Movies

strike

U.S.

<a href="http://dailywire.com/topic/walmart" target="_blank" rel="noopener">Walmart</a> announced on Tuesday that the grocery and retail <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">corporation</a> will increase average <a href="https://www.dailywire.com/topic/wages" target="_blank" rel="noopener">wages</a> for many associates as the job market witnesses a persistent shortage of labor supply.
Walmart U.S. CEO John Furner revealed in a <a href="https://corporate.walmart.com/newsroom/2023/01/24/continuing-to-strengthen-our-jobs-and-invest-in-our-people" target="_blank" rel="noopener">memo</a> that the company plans to implement raises in select stores such that rates are more appealing relative to competitors. Average pay for Walmart employees across the nation will now surpass $17.50 per hour.
“Starting next month, we’ll begin investing in higher wages for associates,” Furner wrote. “This includes a mixture of associates’ regular annual increases and targeted investments in starting rates for thousands of stores, to ensure we have attractive pay in the markets we operate.”
Walmart is one of the largest private sector employers in the United States; the company currently has 1.7 million domestic associates, according to the retailer’s <a href="https://corporate.walmart.com/askwalmart/how-many-people-work-at-walmart" target="_blank" rel="noopener">website</a>. The firm also announced the expansion of various programs related to education initiatives for employees, including an increase in the number of college degrees for which associates can be reimbursed.
Amazon, another leading private sector employer, likewise unveiled nationwide wage increases toward the end of last year: average hourly pay for employees in customer fulfillment and transportation are slated to increase above $19.00 per hour, with employees earning between $16.00 per hour and $26.00 per hour depending on their position and location in the United States, according to a <a href="https://www.aboutamazon.com/news/workplace/amazon-invests-nearly-1-billion-in-increased-wages-for-operations-employees#:~:text=Average%20hourly%20pay%20for%20employees,and%20location%20in%20the%20U.S." target="_blank" rel="noopener">press release</a> from the e-commerce firm.
The wage increases occur as private and public sector employers struggle to hire. There exist roughly 10.5 million job openings and 5.7 million unemployed individuals across the economy, according to a <a href="https://www.dailywire.com/news/unemployment-plummets-in-december-as-federal-reserve-vows-more-rate-hikes" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics, reflecting a constrained labor market that has worsened inflationary pressures as firms increase compensation.
Even as unemployment rates continue to decline, labor force participation has not recovered following the lockdown-induced recession: the metric, which tracks the percentage of the working-age population currently employed or searching for a position, fell from 63% in early 2020 to roughly 62% in late 2022, according to <a href="https://fred.stlouisfed.org/series/CIVPART" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics. Federal Reserve Chair Jerome Powell has <a href="https://www.dailywire.com/news/federal-reserve-chair-jerome-powell-discusses-future-slowdown-of-rate-hikes" target="_blank" rel="noopener">remarked</a> that the workforce “participation gap” is largely a result of “excess retirements” that occurred beyond “what would have been expected from population aging alone,” even as younger cohorts largely return to the job market.
Walmart also revealed incentives meant to help store associates and supply chain employees become certified as truck drivers and <a href="https://www.dailywire.com/news/walmart-will-now-offer-up-to-110000-salary-for-new-drivers-announces-12-week-training-program" target="_blank" rel="noopener">earn</a> as much as $110,000 during their first year in the new position. The constrained labor market has indeed contributed to supply chain bottlenecks; the nation is short 80,000 truck drivers, according to <a href="https://trucking.org/news-insights/ata-chief-economist-pegs-driver-shortage-historic-high" target="_blank" rel="noopener">data</a> from the American Trucking Association, which noted that the figure could expand to 160,000 drivers by 2030.
Other companies have unveiled moves to automate their operations as the persistent labor shortages disadvantage employers in the job market. McDonald’s recently <a href="https://www.dailywire.com/news/the-real-minimum-wage-is-zero-mcdonalds-restaurant-uses-automation-for-pickups-and-orders" target="_blank" rel="noopener">created</a> a test restaurant in Texas in which customers can use kiosks and a mobile app to grab their orders from a conveyor belt rather than interacting with customer-facing staff, while Chipotle <a href="https://www.dailywire.com/news/california-passed-a-new-minimum-wage-bill-now-chipotle-is-testing-a-robotic-chip-maker" target="_blank" rel="noopener">tested</a> a robotic chip maker in a California location.

Walmart Quarterly Revenue Surges 8.6 Percent During COVID-19 Pandemic

Walmart Raises Minimum Wages As Worker Shortages Crunch Labor Market

Walmart Raises Wages As Labor Shortages Crunch Job Market

Business

Walmart

Speaking at the 59th Annual Economic Forecast Luncheon in Phoenix, Arizona, Federal Reserve Governor Christopher Waller <a href="https://www.federalreserve.gov/newsevents/speech/waller20221116a.htm" target="_blank" rel="noopener">implied</a> that employers should slow down any wage increases they hand out so that the American economy can temper inflation.
Waller warned that the economic growth in the third quarter the first half of the year had experienced economic doldrums was only temporary, and that “weak growth has returned in the last quarter of this year and will persist into 2023.” He surmised that because consumer and business spending had softened and Americans had voiced near-record-low consumer attitudes vis-à-vis the economy because of high inflation.
Yet he championed the slowing growth, calling it “absolutely necessary to bring inflation down to our 2 percent target” while crediting the Federal Reserve’s actions as the cause, using as an example the housing market, which has been hit hard by rising interest rates.
“Housing may be the first but won&#8217;t be the last sector of the economy where higher interest rates will have the effect of dampening demand and will ultimately help moderate price increases,” he asserted.
Then he turned to the labor market, acknowledging, “There are almost two jobs for every person looking for work. Wages have been rising more quickly than they have in decades &#8230;”
“We are starting to see some tentative signs of a moderation in wage growth,” Waller pronounced, before giving his implicit warning to employers: “Wage growth has been a contributing factor to inflation, especially in the service sector, so it is important to get the labor market into better balance to bring future wage growth down to a more sustainable level that will assist in moving overall inflation lower.”
In March 2022, Fed Chair Jerome Powell <a href="https://www.bloomberg.com/news/articles/2022-03-17/powell-treads-tricky-path-in-saying-wages-are-rising-too-fast" target="_blank" rel="noopener">offered a similar message</a> regarding wage hikes, saying, “The promise of wages moving up is a great thing. But the increases are running at levels that are well above what would be consistent with our 2% inflation goal over time.”
In May, Powell <a href="https://www.wsj.com/articles/transcript-fed-chief-powells-postmeeting-press-conference-11651696613" target="_blank" rel="noopener">commented,</a> “Wages are rising at the fastest pace in many years,” also declaring, “In principle, it seems as though, by moderating demand, we could see vacancies come down, and as a result—and they could come down fairly significantly and I think put supply and demand at least closer together than they are, and that that would give us a chance to have lower—to get inflation—to get wages down and then get inflation down without having to slow the economy and have a recession and have unemployment rise materially.”

Federal Reserve Hosts FedListens Event

Fed Governor Implies Employers Should Slow Down Wage Increases