US private hiring gains smallest since July as policy jitters loom

Hiring in the US private sector significantly undershot expectations in February, according to data from payroll firm ADP Wednesday, with uncertainty surrounding President Donald Trump's policies potentially weighing on the jobs market.

Private sector employment grew by 77,000 jobs last month, markedly below the 145,000 that a market consensus by Briefing.com anticipated.

This was also the smallest level of gains since July, according to ADP.


"Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month," said ADP chief economist Nela Richardson in a statement.

She added that the firm's data and other indicators suggested there was "hiring hesitancy" among employers as they digested the economic climate.

The slump comes as companies grappled with a volley of tariff threats and hikes after Trump returned to the White House in January.

The president has turned to levies as both a potential revenue source for the government and a negotiation tool used on both allies and adversaries.

Last month, he unveiled steep tariffs of up to 25 percent on Canada and Mexico -- which took effect this week -- and stepped up added duties on Chinese imports.

Private sector job gains in February also slowed sharply from a revised 186,000 figure in January, ADP said.

Sectors like trade and transportation, health care and education, as well as information showed job losses, ADP said in its latest report.