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US adds 214,000 private sector jobs in February, ADP reports

March 02, 2016

US private sector employment rose by 214,000 jobs in February from January, according to the ADP national employment report produced by Automatic Data Processing Inc. (NASD: ADP) in collaboration with Moody’s Analytics. February’s jobs gain is an increase from January’s 193,000 additions, which was revised downward from 205,000.

“Despite the turmoil in the global financial markets, the American job machine remains in high gear,” said Mark Zandi, chief economist of Moody’s Analytics. “Energy and manufacturing remain blemishes on the job market, but other sectors continue to add strongly to payrolls. Full-employment is fast approaching.”

The jobs gain exceeded the median forecast in a Bloomberg survey of economists, which called for a 190,000 increase with estimates ranging from 160,000 to 237,000.

Large businesses added 76,000 jobs in February, a jump from January’s 44,000. Businesses with more than 1,000 employees added 62,000 jobs, while businesses with 500 to 999 employees added 14,000 jobs.

Small businesses added 76,000 jobs in February, in line with January’s downwardly revised 75,000 jobs added. Midsize businesses added 62,000 jobs, down from January’s downwardly revised 74,000, according to the report.

By sector, the service-providing sector added 208,000 jobs in February, up from a downwardly revised 174,000 in January. The report indicates that professional/business services contributed 59,000 jobs, up from January’s downwardly revised 38,000. Trade/transportation/utilities grew by 20,000, down from a downwardly revised 26,000 the previous month. The 8,000 new jobs added in financial activities were the least in that sector since August 2015.

The goods-producing sector added 5,000 jobs in February, just over a quarter of January’s upwardly revised 19,000. The construction industry added 27,000 jobs, which was slightly above January’s upwardly revised 26,000. Meanwhile, manufacturing lost 9,000 jobs, the second-largest drop in five years.