ADP Chief Economist: Jobs Market Strong But Fragmented

The video discusses the current strength of the job market, highlighting the significant role of small firms in driving job gains. Despite high interest rates, these firms continue to hire, while larger firms have retreated. The impact of interest rates on borrowing costs is noted, particularly affecting manufacturers and B2B services. The video also explores inflation concerns, noting a deceleration in wage growth, which suggests that inflation is not being driven by wage increases. Overall, the labor market remains robust without stoking inflation.

What concerns are raised regarding the impact of higher interest rates on small firms?

What sectors are experiencing job gains despite the overall economic conditions?