Private sector employment in the US is below projections
Private sector employment in the US lost momentum in March. According to ADP data, private sector employment increased by 145 thousand.
The median estimate of economists surveyed by Bloomberg was 210,000. Employment in small and medium-sized companies increased by 101 thousand and 33 thousand, respectively, making the biggest contribution.
February employment data was revised from 242 thousand to 261 thousand.
On a sectoral basis, employment increased by 75 thousand people in the service sector and 70 thousand in the production sector. Annual wages rose 6.9 percent in March, according to ADP private employment data, calculated using payroll information for more than 25 million US employees. This rate was 7.2 percent in February.
ADP Chief Economist Nela Richardson said: “The March data is one of several signals that the economy is slowing down. Employers’ strong employment and wage growth theme over the past year is slowing.” made the statement.
Your guesses under The remaining data signals that the Fed’s rate hikes are starting to have an impact on the labor market.
On the other hand, it is stated that the recent turmoil in the banking sector may cause tight credit conditions and companies to stop their growth plans, which may have negative effects on the employment market.
The data released yesterday in the country also showed that the number of job vacancies fell to the lowest level since May 2021 in February. Non-farm employment, which will be announced on Friday, is expected to increase by 240 thousand in March after the increase of 311,000 in February.