US ADP private sector employment grew 242k in February, above expectation of 200k. By sector, goods-producing jobs rose 52k and service-providing jobs rose 190k. By size, small companies lost -61k jobs, but medium companies added 148k and large companies added 160k. Pay growth for job stays slowed to 7.2% yoy, slowest in 12 months.
“There is a tradeoff in the labor market right now,” said Nela Richardson, chief economist, ADP. “We’re seeing robust hiring, which is good for the economy and workers, but pay growth is still quite elevated. The modest slowdown in pay increases, on its own, is unlikely to drive down inflation rapidly in the near-term.”