US Private Hiring Rebounds Sharply
The U.S. labor market showed surprising strength in February, with private companies adding 63,000 jobs — the largest monthly increase in seven months, according to ADP. The rebound suggests underlying resilience in the private sector, though it comes after January's already weak numbers were revised down to just 11,000 new jobs.
The job gains in February were heavily concentrated in a few key areas. The education and health services sector led the charge, adding 58,000 positions, followed by construction with a notable increase of 19,000 jobs. The information sector also saw a respectable gain of 11,000 jobs. However, not all sectors experienced growth. Professional and business services saw a significant decline, shedding 30,000 jobs. The manufacturing sector also continued its downward trend, losing 5,000 jobs, marking another month of losses for the industry. Small businesses were the primary engine of job creation in February. Companies with fewer than 50 employees added a total of 60,000 jobs, accounting for the vast majority of the overall increase. In contrast, large firms with over 500 employees added a modest 10,000 jobs, while medium-sized businesses saw a slight decrease. Wage growth for those who remained in their jobs held steady at 4.5% year-over-year for the third consecutive month. However, the financial incentive to switch jobs appears to be diminishing. Pay growth for job-changers slowed to 6.3%, and the premium for switching employers reached a record low in February, according to ADP's chief economist, Nela Richardson.
