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Which Sector Posted Major Job Gains in February 2018?

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Hiring remains strong across sectors

The ADP February jobs report was published on March 7, 2018. It offered a deeper insight into the employment trends across different sectors in the US employment market. This report is prepared by ADP, a human resource management solutions provider, in collaboration with Moody’s Analytics.

Mark Zandi, the chief economist at Moody’s Analytics, said that the US job market is red hot and looks like it could overheat with additional help from increased government spending and tax cuts.

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Sectors that improved last month

As per the February ADP employment report, job growth in the information sector (VGT) remained weak, while all other sectors reported continued growth. Increased hiring was witnessed in the business and professional services sectors and the leisure and transportation (PEJ) sectors. Job growth remained stable in the manufacturing (TOL), healthcare, and financial (XLF) sectors.

The key takeaway from the ADP February employment report

At 235,000 jobs, the ADP jobs report for February came in above the consensus estimate. The focus will be on the Bureau of Labor Statistics’ (or BLS) non-farm jobs data, which will be reported on March 9, 2018.

Last month’s positive surprise in job and wage growth led to fears that the US Federal Reserve could raise interest rates faster than expected. Though the equity market’s reaction may not be as dramatic as last month, a strong jobs report could lead to upward pressure on bond (BND) yields and the US dollar (UUP)

Equity markets are already volatile thanks to President Donald Trump’s proposed tariffs, so that issue could overshadow the risks from an overheating jobs market.

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