Economy Update – Follow-Up
The non-agricultural private sector experienced job growth in February that fell short of expectations, raising concerns about the broader economic landscape.
As per the latest ADP report, the non-agricultural private sector added 77,000 jobs last month, a significant drop from the 186,000 jobs added in January. This figure contrasts sharply with projections that anticipated an increase of 141,000 jobs.
The job growth recorded in February stands as the lowest since July, coinciding with heightened worries regarding economic growth slowdown, partly exacerbated by tariffs imposed by the administration.
Annual wage growth remained stable at 4.7% in February, matching the level recorded in the previous month, according to ADP data.
Nella Richardson, chief economist at ADP, indicated that political uncertainty and a slowdown in consumer spending may have contributed to reductions in employment during the past month.
Richardson further noted, “Our data, alongside other recent indicators, reflect a fluctuating employment landscape among employers as the economy transitions.”
Drilling down into specific sectors, the trade, transportation, and utilities sector witnessed a loss of 33,000 jobs, while jobs in education and health services decreased by approximately 28,000. Additionally, the information services sector shed 14,000 positions.
Conversely, the leisure and hospitality sectors added 41,000 jobs, and professional and business services saw an increase of 27,000 positions.
The U.S. Department of Labor is set to release its monthly employment report on Friday, with forecasts suggesting that the unemployment rate will stabilize at 4% while projecting an addition of 170,000 jobs.
