Job creation posts blowout month in
February, ADP says Jeff
Cox | @JeffCoxCNBCcom
Companies added jobs at a
blistering pace in February, with a notable shift away from the service-sector
positions that have dominated hiring for years, according to a report
Wednesday.
Employment in the private
sector surged by 298,000 for the month, with goods producers adding 106,000,
ADP and Moody's Analytics said. Construction jobs swelled by 66,000 and
manufacturing added 32,000.
The total shattered market
expectations of 190,000, according to economists surveyed by ADP. The
blockbuster report also solidified market expectations for the Fed to hike interest
rates next week. Probability for an increase jumped to 91 percent after the
release, according to the CME. The report encompassed the
first full month under President Donald
Trump,
who has pledged to rebuild the nation's aging infrastructure system.
"February proved to
be an incredibly strong month for employment with increases we have not seen in
years," Ahu Yildirmaz, vice president and co-head of the ADP Research
Institute, said in a statement.
In addition to the
construction and manufacturing positions, mining and natural resources also
contributed 8,000 to the total. Trump has promised to restore mining jobs as
well.
The year is off to a
sizzling start for job creation, according to the ADP counts. January added
261,000 positions, a number that was revised upward from the originally
reported 246,000.
"Confidence is
playing a large role," Mark Zandi, chief economist of Moody's Analytics,
told CNBC. "Businesses are anticipating a lot of good stuff — tax cuts,
less regulation. They are hiring more aggressively."
Services led the way with
193,000 new jobs, with 66,000 coming from professional and business services.
Health care added 38,000 while information-related jobs came to 25,000.
Job creation was fairly
evenly distributed across business size. Companies with 50 to 499 employees
added the most with 122,000, while small firms added 104,000 and large
contributed 72,000.
In addition to generally
positive sentiment expressed through business surveys, the job climate also got
a boost from weather.
The big number could cause
economists to adjust their expectations for Friday's key nonfarm payrolls
number from the Labor Department. The market currently expects the report to
show growth of about 185,000 jobs.
Comments
This
number has also been reported as 235,000 jobs added. Job
creation numbers for the past 8 years ran about 150,000 jobs per month. 298,000 jobs is roughly double. We should
look for a reduction in the 94 million working-age US citizens who don’t have
jobs. Refugees and illegal alien migration
should be much lower going forward in 2017.
Norb
Leahy, Dunwoody GA Tea Party Leader
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