US private sector adds fewer jobs than expected in February - ADP

6th Mar 2024 12:05

(Sharecast News) - Private sector employment in the US rose less than expected in February, according to figures released on Wednesday by ADP.

Employment increased by 140,000 from January, versus expectations for a 150,000 jump. Meanwhile, January's gain was revised from 107,000 to 111,000.

Small businesses with fewer than 50 employees added 13,000 jobs, while medium businesses with between 50 and 499 employees added 69,000. Large businesses with more than 500 employees created an additional 61,000 jobs.

The service sector added 110,000 jobs, while the goods-producing sector saw a 30,000 increase.

The data also showed that job-stayers saw a 5.1% rise in annual pay in February - the smallest gain since August 2021. Job-changers saw pay growth of 7.6%.

Nela Richardson, chief economist at ADP, said: "Job gains remain solid. Pay gains are trending lower but are still above inflation.

"In short, the labour market is dynamic, but doesn't tip the scales in terms of a Fed rate decision this year."