US February ADP Non-Farm Employment at 77,000... Significantly Below Wall Street Expectations

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Summary

The US February ADP non-farm employment index came in well below Wall Street expectations.
Policy uncertainty and reduced consumer spending have caused businesses to be cautious about hiring, leading to an employment slowdown.
The ADP National Employment Report is used as an important resource for predicting government non-farm sector employment changes.

The US February ADP (Automatic Data Processing) non-farm employment index was significantly below Wall Street expectations. This is the smallest increase since July last year.

According to the National Employment Report released by ADP on the 5th (local time), private sector job creation in February was 77,000, well below both the expected 141,000 and last month's (revised) figure of 186,000.

Nela Richardson, ADP's chief economist, said, "Policy uncertainty and reduced consumer spending have made businesses more cautious about hiring, which has contributed to the employment slowdown."

The ADP National Employment Report is a measure of employment changes based on payroll data from approximately 400,000 US business clients of ADP, and is used as a predictor of government non-farm employment changes because it is released before government data.