10:16 AM EST, 03/07/2025 (MT Newswires) -- The US economy added fewer jobs than estimated in February, while the unemployment rate ticked up, according to government data released Friday.

Total nonfarm payrolls rose by 151,000 last month, the Bureau of Labor Statistics reported. The consensus was for a 160,000 increase, according to a survey compiled by Bloomberg. Gains for January were revised down by 18,000 to 125,000 and adjusted up by 16,000 for December.

The unemployment rate increased to 4.1% from January's 4%, which was the market view for February.

"Payroll growth turned modestly higher in February, following a softer reading in January, which was likely hindered by inclement weather and the California wildfires," TD Economics Senior Economist Thomas Feltmate said in a separate note. "Job growth is likely to soften over the coming months, as federal layoffs related to (the Department of Government Efficiency) continue to mount and ongoing trade policy uncertainty helps to weigh on near-term hiring intentions."

Federal government employment declined by 10,000 in February, the BLS said. Thousands of federal jobs have reportedly been terminated by the Department of Government Efficiency, or DOGE, which was created by President Donald Trump.

Private payrolls advanced by 140,000 in February, accelerating from an 81,000 gain the month prior, but below the consensus of 146,000 on Bloomberg. The service industry added 106,000 jobs last month, while employment for the goods-producing sector turned positive, at 34,000 job additions.

Average hourly earnings grew by 0.3% sequentially, the BLS report showed, in line with the Street's view. The annual measure rose 4%, falling short of the 4.1% rise modeled by analysts.

"Financial markets have become increasingly concerned about slowing growth prospects in recent weeks, with fed futures now fully pricing for three (25-basis-point) rate cuts by year-end," according to Feltmate. "However, the (Federal Reserve) is unlikely to be swayed by the recent market volatility, particularly amid a still healthy labor market and potential policy changes that could further add to still elevated inflationary pressures."

Markets are widely expecting the central bank to leave its policy rate unchanged later this month, according to the CME FedWatch tool.