What’s going on:
In March, the private sector added an impressive 145,000 jobs, while annual pay rose 6.9% year-over-year, as noted in the March ADP National Employment Report.
However, pay growth has slowed for those who stay in their jobs and those who switch, with pay gains for job stayers falling from 7.2% in February to 6.9%, and pay growth for job changers declining from 14.4% to 14.2%.
Why it matters:
Employers are beginning to rein in their hiring and wage increases after a steady three-month plateau, indicating that the economy is starting to slow — with the March payroll data being one of many tell-tale signs.
How it’ll impact the future:
The job market is slowly restoring equilibrium as consumer demand decreases and borrowing costs increase.