Cnn
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The changes of frantic policy of the Trump administration seem to make us companies think about hire new workers.
New data published on Wednesday has shown that hiring by American companies in the private sector has dropped sharply last month, much more than economists expected.
The employment of the private sector increased by around 77,000 jobs in February, according to the ADP pay giant. This is a spectacular drop in the strong employment growth of 186,000 views in January and barely half of the net gain of 142,500 that economists expected, according to factset estimates.
“Political uncertainty and a slowdown in consumption expenses could have led to layoffs or a slowdown in hiring last month,” said Nela Richardson, chief economist in a statement. “Our data, combined with other recent indicators, suggest hesitation among employers when they assess the upcoming economic climate.”
Strong consumption expenditure, awarded with a solid labor market, have helped to fuel economic growth. However, in recent weeks, the all-powerful consumer has started to show a certain apprehension.
Consumer feeling has dropped, inflation expectations have increased, and Overall expenses have dropped For the first time in almost two years.
Consumer confidence in the opposite economy The course at a time when the Trump administration has adopted political and awakening political approaches, including massive slaps on the three largest American trade partners, taking a figurative chainsaw on federal labor and promising mass deportations of unocheared immigrants.
Volatility, especially on issues such as trade, has increased companies’ uncertainty: new data from the New York Federal Reserve Bank showed on Wednesday that companies interviewed expect costs and inflation to increase in 2025.
The National ADP employment report has shown the strongest job losses in the service sector, in particular trade, transport and public services (-33,000); Education and health services (-28,000) and information (-14,000).
Depending on the report, the smallest companies (those with 19 employees or less) and those in the West and the South regions have experienced the largest job losses.
The remuneration gains remained stable at 4.7% for workers who stayed with their employer and slightly increased to 6.7% against 6.8% for people who changed their jobs.
ADP’s tabs are not always correlated with the official relationship of federal jobs, but it is sometimes considered as an indirect indicator of the global job activity.
The February job report is expected to be released on Friday and economists expect a net gain of around 160,000 jobs.