The ADP has just released its latest monthly payroll report, and the results were mixed. During the month of February, the private sector added 212,000 jobs; this missed economists’ forecasts of 220,000 jobs. However, the good news is that private payrolls for January were revised up 3.2% to 250,000, up from 213,000. So, while private sector job growth slowed in February, we’re still seeing a long-term upward trend.
The report showed that there were shrinking employment gains in sectors like manufacturing, goods, and services. For example, service-providing employment increased by 181,000 jobs last month, while in January the growth was 206,000. Similarly, manufacturing added just 3,000 jobs in February, compared to January’s 15,000.
Overall, small businesses added 94,000 jobs, medium businesses added 63,000 jobs, and large businesses only added 56,000. Despite the slower pace, February’s private sector employment numbers are still solid, as employment rates continue to be above 200,000 jobs per month.
The ADP report comes ahead of the Labor Department’s non-farm payrolls report on Friday, which includes both private and public-sector job numbers. Economists estimate that 240,000 new jobs were created in February, and that the Unemployment Rate declined from 5.7% to 5.6%. , which would be a decline from January’s report.
All-in-all, it appears that the labor market recovery is gaining momentum, especially with smaller businesses. So while Friday will be the moment of truth for the state of the jobs market, we should all be encouraged by the secondary reports released today. I’ll have the full details on the new unemployment rate as soon as the numbers are released, so be sure to keep your eyes peeled for my next blog post.