Zhitong Finance and Economics learned that U.S. companies increased hiring at a moderate pace in February, indicating that the demand for workers in various industries is resilient. The number of ADP jobs in the United States in February was 140,000, the largest increase since December 2023, with an expectation of 150,000 and an upward revision of 1110,000 people.
Employment growth in the services sector was again higher than in the manufacturing sector, with both seeing growth in February. The growth in employment is broadly across multiple industries, mainly leisure and hospitality, construction,** and transportation. This growth is also well distributed across regions and business sizes. Among them, the leisure and hospitality sector grew by 410,000, the construction industry increased by 280,000. Other sectors that have shown strong growth include**, Transportation & Utilities (2.).40,000 people), finance (170,000 people) and other services (140,000).
While job growth has remained steady, wages have continued to grow. For those who change jobs, wages increased by 7 percent year-over-year6%, up from 7 in the previous month2%, the first increase since November 2022. Wage growth for those who remain in the workforce continues to slow, with the rate of increase falling to 51%, the smallest increase since August 2021.
Employment growth in the services sector was again higher than in the manufacturing sector, with both seeing growth in February. The growth in employment is broadly across multiple industries, mainly leisure and hospitality, construction,** and transportation. This growth is also well distributed across regions and business sizes. Among them, the leisure and hospitality sector grew by 410,000, the construction industry increased by 280,000. Other sectors that have shown strong growth include**, Transportation & Utilities (2.).40,000 people), finance (170,000 people) and other services (140,000).
Adp Chief Economist Nela Richardson said in a statement: "Job growth remains solid. Wage growth is trending downward, but still higher than the inflation rate. In short, the labor market is dynamic, but it will not affect the Fed's interest rate decision this year. ”
As a blockbuster report ahead of Powell's comments tonight, the ADP data did not provide a reason to trade ahead of Powell's speech. The agency commented that the ADP report showed a job growth of 140,000, slightly lower than expected, but this was well within the margin of error. With Powell's testimony on the horizon, it's hard to see anyone trading on this basis, except for a last-minute tweaking of the position.
For now, the market is paying more attention to the monthly US non-farm payrolls report, which is scheduled to be released on Friday. The report is expected to show a slowdown in employment and wage growth in February, both of which rose sharply in the previous month. Economists, including jobs, added 200,000 non-farm payrolls in the United States in February.
After the release of the ADP data, the probability of a rate cut by the Fed has not changed much. The U.S. 10-year Treasury yield fell slightly after the release of the ADP employment data, last trading at 4135%。The U.S. dollar index DXY** held steady at 10361。Spot *** edged up $2 at 2134$8 oz.