U.S. Treasury Secretary Scott Bessent discusses the economic outlook for America on ‘Kudlow.’
Companies in the private sector added just 77,000 jobs in February, payroll processing firm ADP said on Wednesday.
The figure – the lowest since July – is well below economists’ estimates of 140,000 jobs and also more than the prior month’s upwardly revised reading of 186,000. Annual pay was up 4.7%, the same as the prior month, ADP said.
“Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month,” said Nela Richardson, ADP’s chief economist. “Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead.”
Jobseekers attend a South Florida job fair held at the Amerant Bank Arena on June 26, 2024 in Sunrise, Florida. (Joe Raedle/Getty Images / Getty Images)
US ECONOMY ADDED 143K JOBS IN JANUARY, UNEMPLOYMENT RATE TICKS LOWER
Jobseekers talk to recruiters during the New York Public Library’s annual Bronx Job Fair & Expo at the Bronx Library Center in the Bronx borough of New York. (Yuki Iwamura/Bloomberg via Getty Images / Getty Images)
Leisure and hospitality added 41,000 positions, leading job creation in February. Professional and business services added 27,000 jobs, while financial activities and construction each contributed 26,000. Manufacturing and other services added 18,000 and 17,000 jobs, respectively.
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Manufacturing added 18,000 jobs in February, ADP said. (Photographer: Emily Elconin/Bloomberg via Getty Images / Getty Images)
On the negative side, trade, transportation and utilities lost 33,000 jobs in February, education and health services decreased by 28,000 and information services lost 14,000. Natural resources and mining jobs decreased by 2,000.
Large businesses – those with 500 or more employees – added 37,000 jobs in the month. Businesses with 50 to 499 employees hired 46,000 workers. Establishments with fewer than 50 employees lost 12,000 jobs.
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The ADP data is released before the Labor Department’s nonfarm payrolls report, which is due on Friday morning and can differ notably. The government data is expected to show an increase of 160,000 positions, above the 143,000 reported in January.
