(Washington) Private sector companies in the United States added 145,000 jobs in March, down sharply from the previous month, but also below analysts’ expectations, another sign that the American labor market begins to mark time.
According to the monthly ADP/Stanford Lab survey published on Wednesday, the number of jobs created is much lower than the consensus published by briefing.com, which expected 205,000 additional jobs, but even more compared to the peak observed in February. revised up to 261,000 from 242,000.
“Our data is one of many signals that the economy is slowing down. After a year of strong recruitment and three months of plateaus, employers are reducing hiring and wage increases are slowing, “said Nela Richardson, chief economist for AFP, quoted in a press release.
Wage growth has indeed also slowed over one month, falling to an annual rate of 6.9% in March, against 7.2% in February.
For those who have changed jobs, wage increases are also starting to ease slightly, to 14.2% year on year from 14.3% in February, and even close to 15% in January.
“Wages have increased less than expected. Overall the data points to the labor market gradually easing on the back of rising interest rates,” HFE Chief Economist Rubeela Farooqi said in a note.
“Wages should continue to grow, but at a more subdued pace, as the effects of monetary policy infuse the economy,” she added.
The PCE inflation index, which is the one the Fed wants to bring back towards its 2% target, was released earlier on Friday, with inflation still estimated at 5% year on year in February.
But, above all, inflation now seems to be fueled almost exclusively by core inflation, i.e. excluding food and energy prices – which was 4.7% year-on-year in March – indicating a risk of the establishment of a price-wage spiral, feared by economists.
The Fed has raised interest rates sharply over the past year, bringing them between 4.75% and 5% in the last hike in mid-March after a 0.25 percentage point hike, and plans to tighten the screw further .
