Goods-Sector Jobs Tumble Most Since April As ADP Employment Gains Slow In February
Despite the ongoing weakness signaled in initial (and pandemic emergency) claims data, ADP signaled stronger than expected January gain and analysts expected an even stronger February. However, it wasn’t with ADP reporting just 117k jobs added in February (well below the 205k expectation). January was revised up from 174k to 195k.
For context, payrolls expectations – for Friday – are at 210k.
The good sector saw jobs decline 13.9 in Feb – the biggest monthly decline since April
“The labor market continues to post a sluggish recovery across the board,” said Nela Richardson, chief economist, ADP.
“We’re seeing large-sized companies increasingly feeling the effects of COVID-19, while job growth in the goods producing sector pauses. With the pandemic still in the driver’s seat, the service sector remains well below its pre-pandemic levels; however, this sector is one that will likely benefit the most over time with reopenings and increased consumer confidence.”
Manufacturing was the hardest hit sector…
The biggest companies also saw layoffs…
Finally, we note that February’s job gains are still way below what JPMorgan expects going forward – 675k jobs added per month!
Wed, 03/03/2021 – 08:23