ADP data shows private sector hiring slowed dramatically in February, adding just 77,000 jobs compared to January’s 186,000 and falling well below the 140,000 economists expected.
This marks the largest monthly decline in job additions since March 2023. ADP’s chief economist Nela Richardson attributes this to “policy uncertainty and a slowdown in consumer spending,” noting employers are hesitant to hire as they assess economic conditions.
This report joins other concerning economic indicators, including declines in consumer spending, retail sales, manufacturing, and construction.