U.S. Private Sector Job Growth Falls Well Short Of Estimates In February
(RTTNews) - A report released by payroll processor ADP on Wednesday showed private sector employment in the U.S. increased by much less than expected in the month of February.
ADP said private sector employment rose by 77,000 jobs in February after climbing by an upwardly revised 186,000 jobs in January.
Economists had expected private sector employment to grow by 140,000 jobs compared to the addition of 183,000 jobs originally reported for the previous month.
Private sector job growth slowed to the lowest level since last July, with trade and transportation, health care and education, and information showing job losses, ADP said.
"Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month," said ADP chief economist Nela Richardson.
She added, "Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead."
The report said employment at medium and large businesses increased by 46,000 jobs and 37,000 jobs, respectively, while employment at small businesses dipped by 12,000 jobs.
ADP also said year-over-year pay growth for job-changers slowed slightly to 6.7 percent in February from 6.8 percent in January. Pay growth for job-stayers was flat at 4.7 percent.
On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of February, which includes both public and private sector jobs.
Economists currently expect employment to climb by 160,000 jobs in February after rising by 143,000 jobs in January. The unemployment rate is expected to remain unchanged in February after edging down to 4.0 percent in January.
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