What’s going on:
In February, the U.S. private sector outdid expectations by adding 242,000 payrolls, which is a massive jump from the 119,000 the previous month.
Leisure and hospitality led the way with 83,000 new jobs, followed closely by financial services and manufacturing, according to CNBC.
The latest Labor Department figures show that hiring remains strong, with 10.8 million job openings available in January (roughly 1.9 positions per unemployed worker) which is a slight decrease from December’s 11.2 million.
Why it matters:
Employees who swapped roles experienced a salary rise of 14.3%, a drop from the 14.9% seen in January.
One negative point was the decline in construction jobs by 16,000.
“There is a tradeoff in the labor market right now. We’re seeing robust hiring, which is good for the economy and workers, but pay growth is still quite elevated. The modest slowdown in pay increases, on its own, is unlikely to drive down inflation rapidly in the near-term,” said ADP’s chief economist, Nela Richardson.
How it’ll impact the future:
Before the Federal Reserve’s next judgement, investors are anticipating the upcoming nonfarm payrolls report which will bring additional insight; however, all signs suggest that the labor market will remain robust.