ADP: Private-sector jobs soar with gain of nearly 300K
And construction industry wasn’t left behind
ADP predicts private-employment will soar, according to February’s ADP National Employment Report.
Private-sector employment is set to increase by 298,000 from January to February on a seasonally adjusted basis, according to the report. This increase is up significantly even from January’s unusually high report of 227,000.
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And construction was not left behind as it shot up by 66,000 jobs double the increase of last month’s 36,000. This increase is encouraging in a market that is seeing, in some areas, its lowest level of inventory ever.
“February was a very good month for workers,” Moody’s Analytics Chief Economist Mark Zandi said. “Powering job growth were the construction, mining and manufacturing industries.”
“Unseasonably mild winter weather undoubtedly played a role,” Zandi said. “But near record high job openings and record low layoffs underpin the entire job market.”
Here are some of areas jobs increased in February:
The goods-producing sector added about 106,000 jobs with increases in these areas:
National resources and mining: Increased 8,000
Construction: Increased 66,000
Manufacturing: Increased 32,000
The service-providing sector added about 193,000 jobs with increases in these areas:
Trade, Transportation and Utilities: Increased 9,000
Information: Increased 25,000
Financial activities: Increased 4,000
Professional and business: Increased 66,000
Education and health: Increased 40,000
Leisure and hospitality: Increased 40,000
Other services: Increased 9,000
“February proved to be an incredibly strong month for employment with increases we have not seen in years,” said Ahu Yildirmaz, ADP Research Institute vice president and co-head. “Gains were driven by a surge in the goods sector, while we also saw the information industry experience a notable increase.”
Of course, the employment report does not always follow ADP’s prediction. Last month, the jobs report came in slightly lower than ADP’s predicted increase of 246,000.
For now, the market is already expecting the Federal Reserve to raise interest rates in March’s Federal Open Market Committee meeting next week. If ADP’s predictions are true, the Fed could have all the economic good news they need to justify a rate hike.