By Geoffrey Smith
Investing.com -- The U.S. private sector significantly slowed its hiring in March as last year's string of interest rate hikes took an ever-greater toll on activity, payrolls processor ADP said on Wednesday.
ADP said private-sector employment rose by around 145,000 through the middle of last month, a sharp slowdown from 261,000 in February and well below expectations for a gain of 200,000.
The numbers are the latest to indicate that a labor market that stayed red hot all through last year is now cooling fast. They follow hard on the heels of a Labor Department report showing that job vacancies fell to their lowest level in 21 months in February, dipping below 10 million for the first time since May 2021.
"Our March payroll data is one of several signals that the economy is slowing," ADP chief economist Nela Richardson said in a statement. "Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down."
The report contained conspicuous declines in payrolls in manufacturing (-30,000), financial activities (-51,000), and professional and business services (-46,000), while job gains were again concentrated in leisure and hospitality (+98,000).
ADP's survey also showed a slowdown in pay growth, both for workers who changed jobs and for those who didn't.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.