Companies added less positions than expected in February, according to a report of the ADP National Employment released Wednesday.
- Private payrolls grew 117,000 for the month, below the 225,000 forecasted in a Dow Jones poll. It is also lower than the upward revised 195,000 jobs in January.
- Services drove the net job growth. Trade, transportation, and utilities generated 48,000 jobs; education and health with 35,000; hospitality with 26,000; professional and business services with 22,000.
- Meanwhile, manufacturing lost 14,000 jobs and construction fell by 3,000.
- “We’re seeing large-sized companies increasingly feeling the effects of COVID-19, while job growth in the goods producing sector pauses,” said ADP chief economist Nela Richardson.
- The weak ADP reading comes amid strong economic growth projections in the first quarter. The Atlanta Federal Reserve’s GDPNow tracker forecasts a 10% growth.