ADP: Job Growth Slows Amid Concerns About Uncertain Economic Outlook
Private sector job growth slowed in February amid employers’ concerns about an uncertain economic outlook, ADP said Wednesday (March 5).
The private sector added 77,000 jobs in February, a figure that was down from the revised total of 186,000 jobs added in January and the lowest level of gains since July, the human resources (HR) and payroll solution provider said in a Wednesday press release.
“Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month,” ADP Chief Economist Nela Richardson said in the release. “Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead.”
The Bureau of Labor Statistics (BLS) is set to release its Job Openings and Labor Turnover Summary (JOLTS) for January on Tuesday (March 11).
In its most recent edition of that survey, which was released in February, the BLS said the number of job openings decreased by 556,000 in December and stood at 7.6 million on the last day of the month. The total was down from 8.2 million at the end of November.
The Conference Board said Feb. 25 that consumers’ assessment of current labor market conditions worsened in February amid a general decline in consumer confidence driven by concerns about trade and tariffs.
Among the 10 industry sectors tracked by ADP, six saw job gains in February, according to the company’s Wednesday press release.
The sectors that grew during the month included leisure/hospitality (41,000), professional/business services (27,000), construction (26,000), financial activities (26,000), manufacturing (18,000) and other services (17,000).
The four sectors that shrank in February included trade/transportation/utilities, which lost 33,000 jobs; education/health services, which lost 28,000; information, which lost 14,000; and natural resources/mining, which lost 2,000.
In terms of establishment size, small businesses with between one and 49 employees lost a collective 12,000 jobs, while medium establishments with between 50 and 499 employees added 46,000 jobs and large establishments with 500 or more employees added 37,000, the release said.
Pay gains were little changed in February. Job-changers saw their year-over-year pay gains slow slightly, from 6.8% in January to 6.7% in February, while job-stayers saw their pay gains remain flat at 4.7%, per the release.
The post ADP: Job Growth Slows Amid Concerns About Uncertain Economic Outlook appeared first on PYMNTS.com.