Private sector added 214,000 jobs
Automatic Data Processing (or ADP) and Moody’s Analytics together published the ADP Employment Report for February on March 2, 2016. The report indicated a growth of 214,000 jobs in the private sector compared to 193,000 in the previous month.
In terms of company size, the major rise in employment occurred in small and large businesses, where there was a rise of 76,000 jobs each. Jobs in the medium business sector rose by 62,000.
In terms of the sector-wise growth, the goods sector saw a very minimal rise of 5,000 jobs while the service sectors recorded jobs growth of 208,000.
The ADP Employment Report often acts as a precursor to the Non-Farm Payrolls (or NFP) release by the Bureau of Labor Statistics, which is scheduled for March 4, 2016. Although the numbers in the ADP and Bureau of Labor Statistics reports often vary, the direction of movement is usually the same. The NFP data will be keenly examined by the Federal Reserve before the March meeting, which will discuss whether to hike the interest rates.
Which industries saw growth in jobs?
Looking at the rise in jobs from an industry perspective, all the major industries except manufacturing saw a growth in employment. The manufacturing industry lost 9,000 jobs. The professional/business service segment saw the maximum growth in jobs as the industry saw an increase of 59,000 jobs.
The construction industry was the second-best performer with an increase of 27,000. The trade, transportation, and utilities industry saw a rise of 20,000, and the financial activities industry posted an increase of 8,000 jobs.
Looking at the performance of the major ETFs, the SPDR S&P 500 ETF (SPY) fell by 0.10% on March 2, 2016, at 9:30 AM EST, when the Market opened and after the ADP report was released. The SPDR Dow Jones Industrial Average ETF (DIA) fell by 0.22%.