Jobs are up 117,000 in the private sector according to the February ADP National Employment Report, a drop from January’s 195,000 upwardly revised level and missing the Dow Jones estimate of 225,000.
“The labor market continues to post a sluggish recovery across the board,” Nela Richardson, chief economist, ADP, said in a press release on Wednesday (Mar. 3). “We’re seeing large-sized companies increasingly feeling the effects of COVID-19, while job growth in the goods-producing sector pauses.”
Large businesses of over 1,000 employees even lost jobs–5,000, according to the report–while small- and medium-sized businesses (SMBs) added a combined 89,000 jobs this month.
New February jobs were largely in the service sector, led by trade, transportation and utilities.
Richardson added that even though the coronavirus is still “in the driver’s seat,” service providers will “likely benefit the most over time” as businesses reopen and people feel more confident.
Trade, transportation and utilities added 48,000 positions, while education and health services increased jobs by 35,000. The hospitality industry, which took the biggest hit amid the pandemic, added 26,000 jobs. Employment in the hospitality sector is still down 3.8 million positions over the previous year. Professional and business services added 22,000 jobs, while manufacturing lost 14,000 positions and construction employment dropped by 3,000, according to ADP.
The report is a “disappointment” in light of the declining COVID-19 cases and the lifting of restrictions, Paul Ashworth, chief U.S. economist at Capital Economics, told CNBC.
Despite the ADP jobs report, the Atlanta Federal Reserve’s GDPNow tracker indicates that the U.S. is tracking to gain 10 percent this year. The report indicated that companies with between 50 and 499 employees saw the greatest growth, gaining 57,000 new jobs. Small businesses added 32,000 new jobs, while large firms added 28,000 new positions.
The January ADP report beat job forecasts, seeing the addition of 174,000 jobs, up from December’s 78,000 decline. More recently, there has been an increase in the number of temporary jobs. Some 80 percent of businesses use a combination of full and part-time workers.
The March 2021 ADP National Employment Report will be released at 8:15 a.m. on March 31.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More