MNI BRIEF: Pay Growth For US Job Changers Reaccelerates -ADP
Pay gains for U.S. job changers, which are more sensitive to current labor market conditions, saw a first acceleration since November 2022 last month, according to a Wednesday report from payroll-services provider ADP. The median change in annual pay rose to 7.6% in February from 7.2% the prior month. Meanwhile, job stayers saw another slowing in pay gains to 5.1%, the smallest since August 2021.
"That pay bump suggests some sectors are still tight," especially in construction and leisure and hospitality, ADP chief economist Nela Richardson told reporters. Wage gains didn't trigger inflation but "keep inflation higher for longer."
Private employers added a solid 140,000 job last month. Goods producing firms added 30,000 payrolls, mostly in construction, while leisure and hospitality firms led service-sector hiring with 41,000 new payrolls. Large firms actually saw a pickup in hiring last month, despite headlines about layoff, Richardson said. "The economy is chugging along and hiring is keep that pace." (See: MNI INTERVIEW: US Services Firm Despite ISM Miss, Prices High)