US private sector employment grew moderately in February, coming in stronger than market expectations. Figures from ADP showed payrolls increasing by 63k during the month, compared with forecasts of around 45k.
The increase was driven primarily by the services sector, which added 47k jobs, while goods-producing industries contributed 16k. Small companies accounted for most of the growth, adding 60k positions. Large firms increased employment by 10k, while medium-sized businesses saw payrolls decline by -7k.
Wage growth remained steady but showed signs of cooling momentum for job changers. Pay growth for job-stayers held at 4.5% yoy, while wage gains for those switching employers slowed slightly from 6.4% to 6.3%.
According to Nela Richardson, hiring picked up and wage gains remain solid overall, but job growth remains concentrated in a limited number of sectors and the pay premium for switching employers has fallen to a record low.
