ADP Payroll Report
While the headline reading for February hiring missed by around 16,000, the revision to ADP’s January data was more notable. The second-glance at earlier data deprived the economy of 48,000 positions confirming a tepid labor market. However, investors are likely to grit their teeth and cling to the weather-driven story. And besides, the latest data fails to really show signs of slowdown while shoring up optimism that the payback resulting from the cold winter will produce a positive hiring rebound come the spring. ADP said that private employers added 139,000 new positions in February, up from 127,000 in January, which was revised down from 175,000 last month. Chart 1 indicates that both goods producing and service job creation was firmer than during January. It’s a slow thaw for sure, but indicative of the heart of the matter. February saw slight amelioration. Chart 2 confirms that professional and business hiring accelerated during February while trade and transportation positions also picked up.
Chart 1 – Service employment steady….
Chart 2 – Trade & transport along with professional hiring ticked-up
Small companies added 59,000 positions during February while medium-sized entities added 35,000. Large companies added 44,000. Goods producing type companies added 19,000 and service providers added 120,000 new jobs. The construction industry added 14,000 jobs while manufacturing added just 1,000. Professional jobs rose by 33,000 and just 2,000 more than the gain to trade & transportation jobs.