In February, private sector job growth fell short of expectations, with only 77,000 new positions created compared to the forecasted 140,000. This marks the lowest increase in job gains since July, attributed to losses in sectors such as trade and transportation, information, healthcare and education, and mining.
Employment among small businesses decreased, reversing January’s gains. In contrast, medium-sized businesses (50-499 employees) and large firms (500+ employees) recorded modest growth, adding 46,000 and 37,000 jobs, respectively.
Salary growth remained steady for current employees at 4.7%, while it dipped slightly for those transitioning jobs, falling from 6.8% to 6.7%.
What’s the bottom line?
Nela Richardson, chief economist at ADP, noted that “policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month.” She added that the data, along with other recent indicators, points to a hiring hesitation among employers as they navigate the economic landscape ahead.