19.02.202613:30:00UTC+00Philly Fed Employment Index Turns Negative in February, Signaling Softening Labor Demand

The Philadelphia Fed’s regional employment index for the manufacturing sector slipped into negative territory in February 2026, suggesting a cooling in labor demand across the mid-Atlantic industrial base. The indicator fell to -1.3 in February from 9.7 in January, marking a notable reversal in sentiment among surveyed firms.

The move from solidly positive to slightly negative territory indicates that, on balance, more manufacturers reported declines rather than increases in employment over the month. The January reading of 9.7 had pointed to modest job growth, but February’s deterioration hints at rising caution among employers amid an uncertain economic backdrop.

The updated figures, released on 19 February 2026, will be closely watched by investors and economists as an early regional signal for broader U.S. manufacturing employment trends. A sustained period of negative readings could raise concerns about the durability of industrial hiring and its contribution to overall labor market strength in the United States.