ADP data shows stronger-than-expected job growth last month, with gains concentrated in healthcare, education and construction while wage increases continued across several industries.
By yourNEWS Media Newsroom
Private sector hiring strengthened in February as U.S. businesses added more workers than economists had anticipated, according to the latest payroll data released by ADP.
The payroll processor reported that private employers created 63,000 jobs during the month, a significant increase compared with the revised January figure of 11,000 new positions. Economists had projected job growth of about 43,000 positions for February.
The hiring surge marked the strongest month for private payroll growth in seven months, according to ADP’s analysis of employment data.
“We’ve seen an increase in hiring and pay gains remain solid, especially for job-stayers,” said ADP chief economist Nela Richardson.
Wage growth continued to trend upward for employees who remained with their current employers. Annual pay increased by 4.5 percent for workers who stayed in their positions over the past year.
Some industries reported stronger wage growth than others. Finance workers experienced the largest increases among job stayers, with pay rising 5.2 percent. Manufacturing wages increased 4.9 percent, followed by construction with a 4.7 percent gain. Workers in leisure and hospitality saw wages rise 4.6 percent.
The slowest pay increases were reported in the information technology sector, where wages rose four percent year over year.
Employees who changed jobs saw higher compensation increases overall. Workers who switched employers experienced average pay growth of 6.3 percent.
Employment gains varied widely across industries. The largest increase occurred in healthcare and education, which together added 58,000 jobs. Construction employment rose by 19,000 positions, while the information sector added 11,000 jobs.
Smaller employment gains were recorded in finance, leisure and hospitality, natural resources and other service sectors.
Some industries experienced job losses during the month. Manufacturing payrolls declined, as did employment in trade, transportation and utilities. The largest decrease occurred in business and professional services, which lost 30,000 jobs.
Economists expect the federal government’s official employment report, scheduled for release by the Bureau of Labor Statistics on Friday, to show approximately 50,000 jobs added across the economy during February.
Recent labor market data has indicated diverging trends between public and private employment. Federal government payrolls have been contracting in recent months while private-sector employment has continued to expand.
Overall job growth has slowed compared with earlier periods, a shift analysts attribute partly to rising retirements and tighter immigration policies that have limited the growth of the workforce.
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