The employment report
released by Automatic Data Processing Inc. (ADP) and Moody's Analytics showed
that U.S. private employers added 140,000 jobs in February.
Economists had expected
an addition of 150,000 new jobs for February.
Meanwhile, the January
figure saw an upward
revision to 111,000 from the originally reported 107,000.
According to
the report, the February job gain was led by leisure and hospitality (+41,000), construction (+28,000), and
trade, transportation and utilities (+24,000). Meanwhile, information (-2,000) and natural resources and mining (-4,000) shed jobs.
The report also
revealed that pay growth for job changers accelerated for the first time since
November 2022, rising from 7.2 per cent y-o-y in January to 7.6 per cent y-o-y.
Meanwhile, pay growth for job-stayers continued to decelerate, slipping from 5.2
per cent y-o-y in January to 5.1 per cent y-o-y, the weakest since August 2021.
Commenting on
the latest report, Nela Richardson, ADP’s chief economist, noted that job gains
remain solid, while the pay gains are trending lower but are still above
inflation. “In short, the labor market is dynamic, but doesn't tip the scales
in terms of a Fed rate decision this year,” she added.