U.S. economy generates fewer private sector jobs than forecast, but hiring remains strong

04.18.2013


U.S. economy generates fewer private sector jobs than forecast, but hiring remains strong
U.S. economy generates fewer private sector jobs than forecast, but hiring remains strong

ADP released its monthly employment report earlier this month, which showed that the private sector added fewer jobs than analysts had forecast last month, mostly because of subdued hiring in the construction sector. 

Bloomberg reports ADP's survey found companies added 158,000 jobs in March, marking the lowest reading since October and a much less impressive level than the 237,000 jobs that were added in February. This came in below the median forecast of economists surveyed by Bloomberg, which found many expected employment to rise by 200,000.

"The job market continues to improve, but in fits and starts," said Mark Zandi, chief economist at Moody's Analytics Inc., which helps prepare the report. 

According to the news source, it appears economists were a little overzealous in their estimates for construction hiring, which came in much weaker than in February as projects related to the Hurricane Sandy recovery begin to taper off. Experts also believe forward-thinking over the healthcare law that will soon go into place could have kept hiring stagnant. 

Manufacturing and construction
The report stated that the country's goods-producing sectors - manufacturing and construction - only added 7,000 jobs last month, most of which came from the manufacturing industry. Payroll among construction companies was more or less the same as the previous month.

Job growth was led by small businesses with less than 50 employees, which brought on 74,000 workers last month. Considering these companies make up 99 percent of all businesses in the country, it seems hiring is picking up where it matters most. Large corporations with headcounts higher than 500 came in second, adding 47,000 new jobs, while medium sized companies took on 37,000 new workers.

All in all, CNN reports, most economists say that although the numbers came in below forecasts, it suggests the job market is continuing along its path of improvement.