The health services and education labor market increased by 35,000 jobs (7.2%) last month, whereas the private sector in general added 242,000 jobs overall in February.
That’s according to the ADP Research Institute’s most recent National Employment Report, released in collaboration with the Stanford Digital Economy Lab. The jobs report and pay insights use ADP’s anonymized and aggregated payroll data of more than 25 million US employees to provide a representative picture of the labor market.
“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 remains quite elevated,” ADP Chief Economist Nela Richardson said in a statement. “The modest slowdown in pay increases, on its own, is unlikely to drive down inflation rapidly in the near-term.”
The year-over-year change in annual pay in February was 7.2%, according to the report. Pay growth for job stayers slowed to 7.2% last month, the slowest pace of gains in 12 months.
Small firms with fewer than 19 employees saw a a 5.6% median change in annual pay for job-stayers; for companies with 20 to 49 employees, it was 7.1%. Companies with 50 to 249 employees saw a 7.5% median change in annual pay for job-stayers; for firms with with 250 to 499 employees, it was 7.4%. Large companies with 500 or employees saw a median change in annual pay for job-stayers, at 7.5%.
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