The year is off to a sizzling start for job creation. Employers added almost half a million jobs in the first two months of 2017, the best back-to-back performance since last summer. Not only were workers hired at a robust pace, unemployment came down and wages scaled higher. The number of people losing jobs is also at its lowest since 1973.
Staffing companies stand to gain as the labor market strengthens, while President Donald Trump’s campaign promises, including a job-boosting tax or infrastructure program, is likely to reverse a decade-long decline in factory jobs.
Payroll Shows Solid Gains
U.S. employers added 235,000 new jobs in February within the first full month of Trump’s win, steering past expectations of 191,000. Payroll gains were driven by construction and manufacturing, while wage growth picked up as the labor market continued its steady improvement, indicating a resilient economy.
Employment in weather-sensitive industries got a big boost from the second warmest February on record. Construction jobs, which can fluctuate depending on the weather, increased by 58,000 and marked the biggest rise since the recovery that began in mid-2009. Manufacturing payrolls gained 28,000, matching the most since Aug 2013. Health care providers also added a large number of jobs as did white-collar firms and educational organizations.
Job additions were, in fact, broad-based with the lone exception of retailers. They shed 26,000 jobs, the highest in four years. Nevertheless, robust February jobs data followed a 238,000 increase in January, the best back-to-back performance since July.
Private Sector Adds Jobs
Private employment, in the meantime, rose by 227,000 in February after 221,000 added in the prior month, according to the Labor Department.
Automatic Data Processing, Inc. (ADP – Free Report), however, reported that employment in the private sector rose by 298,000 in February, with goods producers adding 106,000. Construction and manufacturing positions, mining as well as natural resources contributed significantly. January job additions were, in fact, revised upward from 246,000 to 261,000. Nonetheless, both the agencies reported healthy private sector job additions.
