Hiring in the private sector slowed to a three-month low in February, according to this morning’s jobs report from the ADP Research Institute.
The monthly ADP National Employment Report showed the addition of 183,000 jobs to private payrolls — slightly less than the 189,000 jobs predicted by economists. Last month’s report was revised up from 213,000 to 300,000 jobs added.
“The economy has throttled back and so too has job growth,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “The job slowdown is clearest in the retail and travel industries, and at smaller companies. Job gains are still strong, but they have likely seen their high watermark for this expansion.”
Where Jobs Are Growing
“Midsized companies have been the strongest performer for the past year,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “There was a sharp decline in small business growth as these firms continue to struggle with offering competitive wages and benefits.”
Medium-sized businesses — those with between 50 and 499 employees — added 95,000 jobs last month, while small businesses (1 to 49 employees) added 12,000 jobs. Large businesses (500+ employees) added 77,000 jobs in February.
Several industries added to payrolls last month, including:
- Professional/business services (49,000 jobs)
- Health care (39,000 jobs)
- Construction (25,000 jobs)
- Financial activities (21,000 jobs)
- Manufacturing (17,000 jobs)
- Trade/transportation/utilities (14,000 jobs)
- Leisure/hospitality (4,000 jobs)
- Mining (3,000 jobs)
Friday’s report from the Labor Department will tally jobs added to public and private, non-farm payrolls. The monthly Employment Situation Summary also provides the updated unemployment rate and information on wage growth.
The PayScale Index, which measures the change in wages for employed U.S. workers, showed 1 percent growth year-over-year for Q4 2018. However, the buying power of workers’ pay has declined 9 percent since 2006.
Tell Us What You Think
What’s your take on this report? We want to hear from you. Share your thoughts in the comments or join the conversation on Twitter.