US jobs rise by 117,000 in February, but growth is slow

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The number of US jobs rose by 117,000 in February when compared to the previous month as the recovery moves forward slowly, according to the ADP National Employment Report released today. Looking back, jobs had risen by 195,000 in January after falling by 75,000 in December, according to today’s revised data.

February’s gains were concentrated in the service sector.

“The labor market continues to post a sluggish recovery across the board,” said Nela Richardson, chief economist, ADP.

“We’re seeing large-sized companies increasingly feeling the effects of Covid-19, while job growth in the goods-producing sector pauses,” Richardson said. “With the pandemic still in the driver’s seat, the service sector remains well below its pre-pandemic levels; however, this sector is one that will likely benefit the most over time with reopenings and increased consumer confidence.”

ADP’s report found the largest companies — those with 1,000 or more employees — reduced jobs by 5,000. On the other hand, small business added 32,000 jobs while midsize businesses added 57,000.

Larger firms with between 500 and 999 employees added 33,000 jobs.

Here are jobs added by sector in February:

  • Goods-producing, down 14,000
    • Natural resources/mining, up 3,000
    • Construction, down 3,000
    • Manufacturing, down 14,000
  • Service-providing, up 131,000
    • Trade/transportation/utilities, up 48,000
    • Information, down 3,000
    • Financial activities, flat
    • Professional/business services, up 22,000
      • Professional/technical services, up 10,000
      • Management of companies/enterprises, flat
      • Administrative/support services, up 12,000
    • Education/health services, up 35,000
      • Healthcare/social assistance, up 32,000
      • Education, up 3,000
    • Leisure/hospitality, up 26,000
    • Other services, up 3,000

This report is derived from ADP’s actual payroll data and measures the change in total nonfarm private employment each month on a seasonally adjusted basis.