The jobs market did better in February than in January, data from private payroll firm ADP showed, but fell a little short of meeting expectations. Employers added 140,000 jobs—compared to 107,000 added in January, mostly in the services sectors. Additionally, the data showed that average employee pay increased by 5.1% annually.
“Job gains remain solid. Pay gains are trending lower but are still above inflation,” said Nela Richardson, chief economist for ADP. “In short, the labor market is dynamic, but doesn’t tip the scales in terms of a Fed rate decision this year.”
The government on Wednesday reported that there were 8.9 million job openings at the end January, which was about the same from a month previous. However, Amy Glaser, a senior vice president at hiring firm Adecco, said that the demand for jobs is up month to month, and she still predicts growth in the first and second quarters.
The numbers at the beginning of the year can be shaky because of seasonality and revisions to the prior year’s numbers. Economists predict some moderation in the 2024 jobs market.
