American businesses are getting nervous about hiring more workers

The Trump administration’s frenetic policy changes appear to be making US businesses think twice about hiring new workers.

The Trump administration’s frenetic policy changes appear to be making US businesses think twice about hiring new workers. New data released Wednesday showed that hiring by US private-sector companies fell sharply last month, much more than economists had expected. Private-sector employment increased by an estimated 77,000 jobs in February, according to payroll giant ADP. That’s a dramatic drop-off from the strong job growth of 186,000 seen in January and barely half the 142,500 net gain that economists had expected, according to FactSet estimates. “Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month,” Nela Richardson, chief economist at ADP said in a statement. “Our data, combined with other recent indicators, suggests a hiring hesitancy among employers as they assess the economic climate ahead.” Strong consumer spending, shored up by a solid labor market, has helped to power economic growth. However, in recent weeks, the all-mighty consumer was starting to show some apprehension. Consumer sentiment plummeted, inflation expectations went on the rise, and overall spending dropped for the first time in nearly two years.