Companies in the private sector added just 77,000 jobs in February, payroll processing firm ADP said on Wednesday.
The figure – the lowest since July – is well below economists’ estimates of 140,000 jobs and also more than the prior month’s upwardly revised reading of 186,000.
“Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month,” said Nela Richardson, ADP’s chief economist. “Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead.”
Leisure and hospitality added 41,000 positions, leading job creation in February. Professional and business services added 27,000 jobs, while financial activities and construction each contributed 26,000. Manufacturing and other services added 18,000 and 17,000 jobs, respectively.
On the negative side, trade, transportation and utilities lost 33,000 jobs in February, education and health services decreased by 28,000 and information services lost 14,000. Natural resources and mining jobs decreased by 2,000.
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