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Private Employment Up in February, Report Finds
Published on Mar 2, 2011
Read 'Private Employment Up in February, Report Finds' at 'Time to Start Up,' the small business blog by BizFilings.
The U.S. job market continued a three-month-long expansion rate in February, likely in response to higher consumer spending, business filings and small business confidence.
Wednesday's ADP National Employment Report shows the economy added 217,000 jobs last month, which matches the average monthly growth rate since December and proves much higher than the 63,000 monthly gain averaged for the previous six months.
The majority of the gains were in the service sector, where private employers added 202,000 jobs. The manufacturing industry, on the other hand, boasted its fifth straight monthly gain with 20,000 new jobs, providing significant encouragement for a sector that employs one out of every six private workers in the U.S.
"We view these data as corroborating the message of stronger job creation from the decline in jobless claims, the improvement in consumers' perceptions of labor market conditions and the jump in the employment components of manufacturing surveys," wrote analysts at RDQ Economics, according to MarketWatch.
Recent improvements in the availability of credit to small businesses may also have contributed to the surge in hiring, as small firms employ nearly half of all private workers. However, debate remains as to whether this sector is burdened more so by a credit crunch or mere lack of sales.