The number of Americans filing new applications for unemployment benefits fell last week, but sharp government spending cuts and an escalating trade war threaten labor market stability.

The number of Americans filing for unemployment benefits fell slightly last week, indicating a still-healthy U.S. labor market.

Nonfarm payrolls increased 151,000 in February after a downward revision to the prior month, according to a Bureau of Labor Statistics report out Friday. The unemployment rate rose to 4.1%.

U.S. job growth likely picked up in February, with the unemployment rate expected to hold steady at 4.0%, but growing uncertainty over trade policy and deep federal government spending cuts could erode the labor market's resilience in the months ahead.

U.S. job openings rose at the start of the year, another sign the job market was solid when President Donald Trump returned to the White House.

The U.S. labor market appears to be holding steady as the number of Americans filing for unemployment benefits dipped slightly