Employment reports for the private sector in the United States in February were reportedly disappointing, although there were signs of growth in the economy as outlined in the ADP report.
The company sector only managed to add 117,000 jobs in February. This figure is far from the forecast of economists targeting 225,000 jobs added. That number also shows a decline from the 195,000 jobs recorded in January.
This ADP report is a bit disappointing given that there has been a significant decline in the number of Covid-19 cases and lockdown measures have also been withdrawn as stated by Paul Ashwoth, head of U.S. economics. of Capital Economics.
According to ADP chief economist Nela Richardson, the labor market continues to recover, albeit slowly. He added that large-sized companies were increasingly affected by Covid-19. Companies between 50 and 499 employees saw the largest growth, with 57,000 new jobs, while small businesses added 32,000 jobs and large companies contributed 28,000 jobs.
The market expects the NFP reading to increase by 210,000 based on a survey conducted by Dow Jones.
