U.S. private sector employment rose more than expected in February. Demand for labor remains strong, highlighting a situation that has led to strong wage growth.
| Key Point |
|---|
|
February Employment
Private payrolls picked up last month, led by leisure and hospitality
Source: ADP Research Institute
By industry, employment growth was particularly large in the entertainment and hospitality and financial sectors. Employment at companies with 50 or more employees showed strong growth, while employment at small companies with less than 50 employees fell for the fifth consecutive month.
The data highlight that market conditions remain tight despite the Fed’s aggressive interest rate hikes aimed at calming the labor market. Demand for labor continues to outstrip supply, and layoffs have so far mostly been confined to the tech and finance industries. Employment is increasing even in the service industry, which was in a difficult situation in terms of hiring personnel during the corona crisis.
Bloomberg TV report on ADP employment statistics
Source: Bloomberg
Those who stayed in their jobs saw their wages rise 7.2% in February from a year earlier, the slowest increase in a year, according to ADP data. Among those who changed jobs, the median wage growth slowed to 14.3% year-on-year.
“While hiring is strong and positive for the economy and workers, wage growth remains quite high,” ADP chief economist Nella Richardson said in a statement. “Wage growth has slowed somewhat, but that alone is unlikely to lead to a sharp slowdown in inflation in the near term,” she added.
Original title:ADP Data Show US Companies Added More Jobs Than Forecast(excerpt)
(Add and update stats details)
