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PrintPrivate Employment Rises By 77,000 In February, Well Below 144,000 Forecast: 'Hiring Hesitancy Among Employers'
BY Benzinga | ECONOMIC | 03/05/25 08:40 AM ESTPrivate employers created 77,000 new jobs in February, the smallest number in seven months and well below forecasts of 140,000.
The ADP National Employment Report, released Wednesday by Automatic Data Processing Inc., showed a significant slowdown in hiring ahead of Friday’s non-farm payrolls report from the Bureau of Labor Statistics. Economists expect the government report to show 160,000 new jobs.
Nela Richardson, ADP's chief economist, said: "Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month. Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead."
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The Details:
Goods-producing industries added 42,000 jobs, driven by hiring in construction and manufacturing.
Service-providing industries added 36,000 jobs, driven by Leisure and hospitality, which added 41,000 positions. This was offset by reductions of 33,000 in Trade/transportation/utilities and 28,000 in Education/health services.?
January's private employment growth was also revised upward from 183,000 to 186,000.
In February, pay gains showed stability overall. For individuals who changed jobs, year-over-year pay increases experienced a slight decrease, dropping from 6.8% in January to 6.7% in February. Meanwhile, pay gains for those who remained in their jobs remained unchanged at 4.7%.
Market Reactions:
The U.S. Dollar Index (DXY) ? as tracked by the Invesco DB USD Index Bullish Fund ETF ? was down 0.58% minutes after the release.
Futures on major U.S. indices were mixed in premarket trading in New York. The SPDR S&P 500 ETF Trust
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