- US private employers added fewer jobs than expected in March as employers became more cautious about concerns about slowing economic growth.
- ADP’s National Employment Report showed that private sector employment rose by 145,000, down from February and below economists’ expectations.
- The report is “one of several signs that the economy is slowing,” said Nella Richardson, chief economist at ADP.
US companies added fewer jobs than expected last month as employers became more cautious due to fears of slowing economic growth.
View payroll provider ADP’s national employment report Employment in the private sector It rose by 145,000, down from the upwardly revised jump of 261,000 in February and below economists’ expectations.
Employment in the service sector, which drove the return of the labor market after the COVID-19 recession, has slowed dramatically. Only 75,000 new jobs were created, 115,000 fewer than the previous month. Entertainment and hospitality led to the gains (+98,000); followed by trade, transportation and utilities (+56,000); education and health services (+17,000); And other services (+8000). jobs lost in financial activities (-51,000); professional and business services (-46,000); and information (-7000).
In the commodity production sector, companies have increased employment by 70,000, with progress in construction (+53,000), as well as natural resources and mining (+47,000). Manufacturing employment decreased (-30,000).
Slowing wage growth
ADP noted that wage growth slowed for those who stayed in their jobs and those who changed jobs. Annual increases for the unemployed rose to 6.9% in March from 7.2% in February. Job changers registered an increase of 14.2% compared to 14.4% in the previous month.
The report is “one of several signs that the economy is slowing,” said Nella Richardson, chief economist at ADP. She explained that employers are “holding back” a year when they boosted hiring and offered higher compensation. She indicated that wage increases are gradually declining after a three-month stability.
The Labor Department is scheduled to release the March Nonfarm Payroll report on Friday. It is estimated that the economy registered an increase of 240,000 jobs.