US Private Sector Adds 77,000 Jobs in February

According to the latest ADP National Employment Report, the United States private sector witnessed an addition of 77,000 jobs in February, a figure that fell short of analysts' expectations. This development highlights the ongoing challenges in the labor market.

Sector-wise Job Growth

The goods-producing sector contributed 42,000 jobs, whereas the service sector added 36,000 jobs. Interestingly, small businesses faced a setback with a loss of 12,000 positions, contrasting with the gains in medium and large-sized companies, which added 46,000 and 37,000 jobs respectively.

Wage Growth Trends

Annual pay saw a 4.7% increase for job stayers and a significant 6.7% rise for job switchers, indicating a dynamic shift in the employment landscape.

Expert Insights

ADP's Chief Economist, Nela Richardson, pointed out that policy uncertainty and a deceleration in consumer spending could be the culprits behind the layoffs or a hiring slowdown. She emphasized that the current data, along with other indicators, suggests a cautious approach by employers towards hiring, as they navigate through the uncertain economic environment.