February job growth healthy at 183K pre-virus
WASHINGTON — U.S. businesses added 183,000 jobs last month, a solid gain that shows the economy was largely healthy when the coronavirus outbreak spread further around the globe.
Payroll processor ADP said Wednesday that February’s hiring was down from 209,000 in the previous month. Manufacturing and mining firms shed jobs last month, while hiring in health care and a category mostly made up of hotels and restaurants was strong.
Mark Zandi, chief economist at Moody’s Analytics, which helps prepare the report, said that the figures were compiled the week of February 12, before the viral outbreak was widespread outside China. He also said warm weather likely boosted job gains in construction, which added 18,000 positions, and in the hotels and restaurants category, which gained 44,000. That suggests hiring in those industries could slip in the coming months.
Economists forecast that the government will report on Friday that 173,000 jobs were added last month, according to data provider FactSet. The ADP report doesn’t include government hiring and often diverges from the official figures.
Zandi, like other economists, said the coronavirus would likely hamper growth in the coming months, as businesses and consumers cancel conferences and vacations.
“We’ll likely see much slower growth and recession risks will rise,” he said.
Still, he said that in more recent ADP data that has come in after the report was compiled, there haven’t been signs that companies are shedding jobs.
Large companies, with 500 or more employees, added roughly two-thirds of the jobs last month, ADP said, while hiring was relatively weak among smaller firms, those with 49 or fewer.
