US nonfarm private employment rose by 475,000 jobs in February with gains in all sectors, according to the ADP National Employment Report released today. The leisure and hospitality sector posted the largest boost in February with a gain of 170,000 jobs.
Large businesses added 552,000 jobs and midsize businesses — those with 50-499 employees — added 18,000 jobs. However, small businesses struggled to compete for workers and lost 96,000 jobs in February.
“Hiring remains robust but [was] capped by reduced labor supply post-pandemic. Last month, large companies showed they are well-poised to compete with higher wages and benefit offerings, and posted the strongest reading since the early days of the pandemic recovery,” said Nela Richardson, chief economist at ADP. “Small companies lost ground as they continue to struggle to keep pace with the wages and benefits needed to attract a limited pool of qualified workers.”
Economists polled by Reuters had forecast private payrolls would increase by 388,000 jobs.
The estimate for January was also revised sharply from the initially reported loss of 301,000 jobs to a gain of 509,000 jobs. With those revisions, the February jobs gain was actually the weakest since August, despite beating expectations, CNN Business reported.
“You’re seeing it in all data that the tremendous upheaval and swings in the early days of the pandemic will have an impact on measurements and seasonal adjustments,” Richardson told CNN Business. That’s why the revisions in economic models are so huge at the moment.
Here are the jobs added in February by sector:
- Goods-producing, up 57,000
- Natural resources/mining, up 2,000
- Construction, up 26,000
- Manufacturing, up 30,000
- Service-providing, up 417,000
- Trade/transportation/utilities, up 98,000
- Information, up 8,000
- Financial activities, up 11,000
- Professional/business services, up 72,000
- Professional/technical services, up 40,000
- Management of companies/enterprises, up 4,000
- Administrative/support services, up 29,000
- Education/health services, up 40,000
- Healthcare/social assistance, up 38,000
- Education, up 2,000
- Leisure/hospitality, up 170,000
- Other services, up 18,000
The US Bureau of Labor Statistics is slated to publish its report on February job numbers data on Friday.