The growth of jobs in March reached an 18-month low, against the background of growing signs that the hiring boom might be exhausted, reports ADP and Moody's Analytics.
The labor market is weakening, with employment growth in most sectors and sizes of companies slowing significantly, "said Mark Zandy, chief economist at Moody's Analytics. "Companies are cautious in hiring jobs, as the economy is struggling with a fading fiscal stimulus, trade uncertainty and lagging behind the federal budget, and unemployment will start to increase if employment growth significantly weakens."
services, which increased by 135 thousand, while manufacturing industries lost 6000 positions. The decrease of 6,000 construction and 2000 in production was offset by a slight increase in the amount of natural resources and extraction of 2,000 jobs.
In terms of education plus health care, there was an increase of 56,000, and professional and business services – by 41,000. Recreation and hospitality increased by 13 thousand, and information services grew by 11 thousand, while trade, transport and utilities grew by 9 thousand. Financial activity declined by 1,000.
A disappointing number comes when Wall Street closely monitors the job market for signs of an economic downturn. On the day the employees of the Department of Labor were released, and economists are looking for an increase of 175,000 after weak numbers in February.
"The common hope is that the administration of Trump and the Chinese will agree here and get an agreement and this trade war will end. But until this happens, the uncertainty created as a result of the conflict greatly aggravates the collective psyche," Zandy said. in conference rooms
ADP and the government often believe conflicts, as evidenced by 177 thousand mismatches in total in February, was the main growth engine for hiring, which fought in March with only 6,000 new employees, according to with report ADP / Moody & # 3 9; s. The biggest game with firms from 50 to 499 employees, which increased by 63,000, and large companies – by 60,000.