Job growth downshifts in February

ADP said the private sector added a net 77k jobs in February, about half the estimate of 140k and follows a gain of 186k last month. The smallest businesses, those with employees less than 20, lost jobs by 17k with firms having 20-49 workers hired just 5k. Thus, medium and large companies drove all of the gains. The service sector added just 36k jobs, while the goods producing sector hired 42k.

Within services, it was really a mixed bag as the persistent area of strength lost jobs. That being education/health services which shed 28k jobs. Also, jobs were lost in information and trade/transportation/utilities by a combined 47k. On the hiring side, leisure/hospitality led the gains with a gain of 41k. Professional/business services hired 27k people and financial services added 26k.

On the goods side, it was mostly construction workers that drove the increase, with a rise of 26k but manufacturing rebounded with a net hiring of 18k.