ADP: Private Sector Added 298000 Jobs in February

Tammy Harvey
March 9, 2017

The report also marks the fourth consecutive month of monthly private sector job growth above 200,000.

Companies added the most workers in nearly three years to USA payrolls in February on a surge in construction and manufacturing employment, data from the ADP Research Institute in Roseland, New Jersey, showed Wednesday.

"February was a very good month for workers", said Mark Zandi, chief economist of Moody's Analytics. "Powering job growth were the construction, mining and manufacturing industries". Did construction hiring in February gain further momentum after 36,000 jobs were added in January?

The data, which is extracted from ADP payroll data, is frequently seen as a predictor of the Labor Department's monthly employment report, which is due out Friday. The dollar rose to 114.74 yen, its highest against the Japanese currency since March 3, just below a almost one-month high. Zandi is also seeing signs of improvement in the global economy also helping boost jobs in the U.S. The policies of the Trump administration, with expectations for tax reform and regulatory reform, are also improving business confidence. Services added 193,000, with 66,000 coming from professional and business services. "They are hiring more aggressively".

One of the things that was supposed to make robust job growth almost impossible under Trump was the already low unemployment rate, which supposedly would make it impossible to produce the kinds of job growth Trump had promised.

And given this years-long strength under Obama, it remained unclear how much slack there really was in the United States labor market.

But with market pricing all but guaranteeing a Fed rate hike later this month, the more interesting narrative that could develop out of this report is the labor market as another place we're seeing the Trump-based economic sentiment bump crop up. Thus, near or at full capacity, raise interest rates.

Of course, this is merely one month's data. Employers in every sub-sector increased hiring on net, ADP's report showed. Some may even disappoint expectations.

The strong dollar, compared to other currencies, makes it more expensive for foreign travelers to visit the U.S. That, combined with the headlines associated with the court-challenged travel "ban", raises the risk that worldwide travelers think twice about visiting the U.S. That, in turn, could put pressure on the travel industry.

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