A Ask for Help sign for mechanics and technicians is posted in front of an auto care gas station in Montebello, California on February 3, 2022.
Frederic J. Brown | AFP | beautiful pictures
Private job creation grew faster than expected in February, according to figures released Wednesday from payroll processor ADP.
Companies added 475,000 positions for the month, better than Dow Jones estimates of 400,000.
The ADP has also significantly revised the January count, from an initial reported loss of 301,000 reached 509,000. That makes the tally more consistent with Ministry of Labor counts in the month reached 467,000.
Wednesday’s report noted that the ADP made annual revisions to its numbers in February to match Census and Bureau of Labor Statistics data. Other months of the past year have seen corrections, but none as large as January 2022.
“Hiring remains strong but is limited by the post-pandemic drop in labor supply,” said ADP chief economist Nela Richardson. “Last month, big companies showed they were ready to compete with higher wages and benefits, and posted their strongest headlines since the early days of the pandemic recovery.”
Companies with 500 or more workers were responsible for most of the hiring for the month, adding 552,000 positions. Companies with fewer than 50 employees recorded a loss of 96,000, while midsize businesses added just 18,000.
By sector, leisure and hospitality had the largest increase, with an increase of 170,000. Trade, transport and utilities contributed 98,000, while professional and business services added 72,000.
In terms of production of goods, manufacturing increased by 30,000 and construction by 26,000.
While the two can vary widely, the ADP count serves as a precursor to the more widely watched BLS nonfarm payrolls report, released on Friday. Economists surveyed by Dow Jones expect the economy to add 440,000 jobs for the month.
