Private sector employers added 77,000 jobs in February, while annual pay grew 4.7% year over year, payroll processor ADP
Hiring slowed to the smallest level since July, with trade and transportation, health care and education, and information showing job losses. Small business employment also declined. The service-providing sector added 36,000 jobs in February, including 27,000 in professional and business services such as accounting and tax preparation. The goods-producing sector added 42,000 jobs, including 26,000 in construction and 18,000 in manufacturing, offset by losses of 2,000 jobs in the natural resources and mining sector.
"This is the first time in seven years that we saw goods-producing firms outpace service-providing firms in hiring," said ADP chief economist Nela Richardson.
Small businesses lost 12,000 jobs, including 17,000 in businesses with between one and 19 employees, partially offset by a gain of 5,000 jobs in businesses with between 20 and 49 employees. Medium-size establishments gained 46,000 jobs, including 15,000 at businesses with between 50 and 249 employees, and 31,000 at businesses with between 250 and 499 employees. Large businesses with 500 or more employees added 37,000 jobs for the month.
For people who changed jobs, the year-over-year pay gains slowed slightly, from 6.8% in January to 6.7%. Pay gains for those who stayed at their jobs were flat at 4.7%. For professional and business services, the rate for job stayers was 4.5%.
"With 4% unemployment, we're still seeing pretty robust supply and demand in the labor market, and it's still a market where there's a balance, and that requires small firms to keep pace in terms of wage growth," said Richardson. "They may, in some sense, be losing traction in terms of pay growth to those larger firms. That might be one of the reasons we see some weakness there."
