US companies boosted payrolls by 235 000 in February | Fin24

US companies boosted payrolls by 235 000 in February

Mar 07 2018 15:53
Katia Dmitrieva, Bloomberg

Washington - Companies in the US added more workers in February than expected, underscoring continued strengthening in the labour market, according to data released on Wednesday from the ADP Research Institute.

Highlights of ADP employment (February)

• Private payrolls increased by 235k (200k est.) after an upwardly revised 244k increase in January.

• Payrolls in goods-producing industries, which include builders and manufacturers, rose 37k.

• Service providers added 198k workers to payroll.

Key takeaways

The results show a continued trend of robust hiring as companies hunt for employees to fill empty spots. The gains point to sustained consumer spending, which accounts for about 70% of the economy.

Every single sector except information gained jobs in the period. The report is based on ADP’s payroll data, representing about 411 000 firms employing almost 24 million workers in the US.

The ADP reading compares with the median estimate of economists for 198 000 private-sector job gains in February, ahead of the Labour Department’s monthly figures due on Friday.

The unemployment rate probably fell to 4% from 4.1% in the prior month, according to analyst forecasts.

Economist’s view

“The job market is red hot and threatens to overheat,” Mark Zandi, chief economist of Moody’s Analytics in West Chester, Pennsylvania, said in the statement. Moody’s produces the figures with ADP.

“With government spending increases and tax cuts, growth is set to accelerate.”

Other details

• Construction payrolls increased 21 000.

• Professional and business services added 46 000 workers, and leisure and hospitality also took on 50 000 employees.

• Large firms, those employing 500 or more workers, increased staffing by 70 000 jobs; payrolls rose by 97 000 at medium-sized businesses, or those with 50 to 499 employees; and small companies added 68 000 jobs.

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us  |  jobs  |  economy


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