US Private Employment Increased by 140,000 in February... Below Market Expectations

ADP Report
Increase Accelerates Compared to January... "Employment Growth Remains Strong"

In February of this year, private employment in the United States increased less than market expectations. However, the increase exceeded that of the previous month, indicating that the labor market remains robust.

According to the U.S. employment report released on the 6th (local time) by ADP, a private labor market research firm, private sector job creation in February was 140,000, falling short of the market expectation of 149,000. However, the increase was larger than the 111,000 new private jobs added in January.

By sector, the leisure and hospitality sector saw the largest increase with 41,000 jobs added. This was followed by construction with 28,000, trade, transportation, and utilities with 24,000, finance with 17,000, other services with 14,000, and education and healthcare services with 11,000.

Wages for workers who have been at the same job for the past 12 months rose by 5.1% year-over-year. This is the smallest increase since August 2021 and is interpreted as a sign that wage-driven inflationary pressures are easing.

Nela Richardson, ADP’s Chief Economist, stated, "The employment growth remains solid," adding, "Although wage growth has slowed, it still exceeds inflation." She further analyzed, "The labor market is dynamic, but it is not at a level that would change the Federal Reserve’s interest rate decisions this year."

The ADP report was released ahead of the February employment report by the U.S. Department of Labor scheduled for the 8th. To more accurately assess the labor market situation, the official government report should be reviewed.