Companies in the United States added 198,000 workers in February this year, according to the National Employment Report released by the Automatic Data Processing (NASDAQ:ADP) Research Institute in collaboration with Moody’s Analytics.
The research firm also revised the job gains reported in January; it increased by 23,000 from 198,000 to 215,000. ADP’s jobs report is based on actual monthly payroll data in the whole non-farm employment sector, adjusted on a seasonal basis.
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The job gains reported by Automatic Data Processing (NASDAQ:ADP) is higher than the 170,000 average estimate of 41 economists compiled by Bloomberg.
Data from ADP showed that small businesses hired 77,000 employees, medium-sized businesses hired 65,000 employees, and large companies employed an additional 57,000 employees during the month of February.
According to Carlos Rodriguez, president and chief executive officer of Automatic Data Processing (NASDAQ:ADP), the majority of job growth is happening in the services sector and this can be attributed to comparable contributions across all three company size segments.
The goods producing sector added 34,000 jobs, while the service providing sector added 164,000 jobs. In terms of industry breakdown, the report showed that the construction industry added 21,000 jobs, manufacturing added 9,000 jobs, trade/transportation/utilities added 45,000 jobs, financial added 7,000 jobs, and professional/business services added 35,000 jobs.
In a statement, Mark Zandi, chief economist at Moody’s Analytics said, “The job market remains sturdy in the face of significant fiscal headwinds. Moody’s Corporation (NYSE:MCO) produces the figures with ADP. “Businesses are adding to payrolls more strongly at the start of 2013 with gains across all industries and business sizes. Tax increases and government spending cuts don’t appear to be affecting the job market.”
Based on a survey conducted by Bloomberg, economists expect the Labour Department to report a 167,000 increase in private payrolls during the previous month. The agency is expected to release its latest jobs report, including government jobs, on March 8. Economists predict that the jobless rate will stand at 7.9 percent.
Bloomberg also cited that legislators who are debating on budget reductions in Congress are confident that there is enough demand to support the economy. The Dow Jones Industrial Average is expected to advance to its highest level as stock futures is climbing.
Some of the companies hiring workers include the Chrysler Group, which recently announced its plan to create additional 1,250 new jobs in Indiana to increase its transmission production.