While the government’s jobs report showed losses, separate data from ADP noted that private employers added 63,000 jobs in February, topping expectations of 50,000. Small businesses drove nearly all the gains (+60,000), while medium-sized firms cut 7,000 jobs and large companies added 10,000.
What’s the bottom line?
Even though ADP beat forecasts, hiring was uneven with the gains concentrated in a handful of sectors. At the same time, switching jobs no longer delivers the big pay bump it once did. Job switchers are still seeing higher annual pay growth (6.3%) than those who stay put (4.5%), but the gap has narrowed to 1.8% – the smallest on record. That suggests the labor market is becoming less competitive.