Private Employers Add Fewer Jobs in February Than Forecast

Private Employers Add 139,000 Jobs, ADP Survey Shows
M. Spencer Green/AP

By Jeanna Smialek

Companies added fewer workers than projected in February, a sign that U.S. employers were waiting for a pickup in demand before boosting headcount, a private report based on payrolls showed today.

The 139,000 increase in employment followed a revised 127,000 gain in January that was weaker than initially reported, the weakest two months since August-September 2012, according to the ADP Research Institute in Roseland, N.J. The median forecast of 39 economists surveyed by Bloomberg called for a 155,000 advance.

Harsh winter weather conditions, which kept some shoppers away from stores and car dealerships, help explain why companies were hesitant to accelerate hiring at a more robust pace. Faster payroll growth that spurs bigger wage gains would help to boost the consumer purchases that make up almost 70 percent of the economy.

"Employment was weak across a number of industries," Mark Zandi, chief economist at Moody's Analytics in West Chester, Pa., said in a statement. Moody's produces the figures with ADP (ADP). "Bad winter weather, especially in mid-month, weighed on payrolls. Job growth is expected to improve with warmer temperatures."

Estimates in the Bloomberg survey of economists ranged from gains of 100,000 to 180,000 after a previously reported increase of 175,000 in January.
Missing Mark

ADP's numbers have missed the mark in tracking the government's jobs figures over the past couple of months.

The group's initial estimates showed a 238,000 gain in employment for December followed by a 175,000 January increase. That compares with the Labor Department's initial estimate of an 87,000 gain in December private payrolls and a 142,000 increase in January.

Stock-index futures were little changed after the report. The contract on the Standard & Poor's 500 index (^GSPC) expiring this month rose less than 0.1 percent to 1,872 at 9:06 a.m. in New York.

Payrolls at goods-producing industries increased headcount by 19,000. Factories added 1,000 workers, while construction companies took on 14,000. Service providers climbed by 120,000 jobs in February, led by professional and business service providers.

Companies employing 500 or more workers added 44,000 jobs. Medium-sized businesses, with 50 to 499 employees, took on 35,000 workers and small companies expanded payrolls by 59,000.
Jobs Numbers

A Labor Department report scheduled for release on March 7 may show that private payrolls rose by 154,000 last month, according to the Bloomberg survey median. Total payrolls, which include government jobs, probably rose 150,000 after a 113,000 gain in January, based on the Bloomberg survey median.

"The very cold weather is playing havoc on all the economic data," Zandi said in an interview on CNBC. The group's estimates aren't affected by the weather, so the Labor Department's figures could come in even weaker than the ADP figures, he said.

ADP's data are based on the number of people on their customers' payrolls, while the Labor Department's figures are based on the number of workers receiving pay for the period covered by the agency's survey week that includes the 12th of the month.

The week ended Feb. 15 was the coldest second week of February since 2011, according to weather-data provider Planalytics. The South Atlantic region of the U.S. experienced the most snowfall since 1983 and New England registered the most snow in 20 years, the Berwyn, Pa.-based firm said. The colder temperatures and winter storms followed the chilliest January in three years.

Warmer Weather

In areas where weather has been less of a factor, demand has held up, according to Kevin Mansell, chief executive officer at clothing and home goods retailer Kohl's (KSS).

"Frankly our West Coast business, which has had good weather particularly for spring selling, has performed really well," Mansell said in a Feb. 27 conference call. "That gives us a lot of optimism," he said, "once there's more reasonable weather in particularly the Midwest and Northeast."

Winter's effect on the homebuilding industry may temper construction hiring. Housing starts fell 16 percent in January to an 880,000 annualized rate, according to data from the Commerce Department issued Feb. 19.

Verizon Communications' (VZ) wireless division is among those adding to employee rosters. The company is bringing on 98 customer specialist and retail jobs in South Carolina before April 1, it announced in a release this week.


More From Bloomberg:

Increase your money and finance knowledge from home

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

Add a Comment

*0 / 3000 Character Maximum

Comments

Filter by:
toosmart4u

The only people who want to end Obamacare are the republicans and the freeloaders who want the taxpayers to pay for their health insurance by going to the emergency room.

March 06 2014 at 3:58 AM Report abuse -3 rate up rate down Reply
toosmart4u

Republicans are treating the affordable care act like they did social security and medicare when the 2 first came out. Do not believe the bull coming from the GOP for many of the members cannot think for themselves. The GOP congress should be sent home in the next election. Amen.

March 06 2014 at 3:55 AM Report abuse -3 rate up rate down Reply
betty_brock

H E L L O, private companies can't afford Obamacare for more employees.

March 05 2014 at 10:08 PM Report abuse +1 rate up rate down Reply
betty_brock

Farmers in Florida will be required to provide insurance for migrant workers. Watch for higher food prices and less food being produced.

from Washington Report; Janell Hendren, National Affairs Coordinator

March 05 2014 at 8:36 PM Report abuse rate up rate down Reply
k4jlp

And yet the energy, healthcare and food producers want more and more and more....It's really all tied to energy. Everything you eat, need and want in life is tied to energy cost in some way.

March 05 2014 at 8:30 PM Report abuse -1 rate up rate down Reply
jrb359

Job situation won't get better for another 3 years. Maybe by then most regulations will be removed, and obamacare will be repealed!

March 05 2014 at 6:32 PM Report abuse -1 rate up rate down Reply
paddleman1928

we continually are fed the hype about how the economy is picking up-and then we get the reality-it isn't at all.

March 05 2014 at 6:07 PM Report abuse +3 rate up rate down Reply
jwm347

We still have fools that think obama has done a good job. How stupid are you people? We should take your voting privelages away so we never get caught with another bozo in the white house

March 05 2014 at 5:57 PM Report abuse +2 rate up rate down Reply
teaparty2implode

The tea party almost pickedaduncetorunthecountry, Michele Bachmann.

March 05 2014 at 5:41 PM Report abuse +3 rate up rate down Reply
teaparty2implode

Following the government shutdown, both political parties and their true colors came to light. While the Democrats were aligned together, the Republican party was more divided than ever before.

Following he government shutdown, thousands of Americans have been put out of work, national parks and museums have been closed and uncertainty growing more in the minds of the American people by the day. Recent polls show that Congress now has a single digit approval rating and the latest Gallup poll revealed the Republican party has their lowest approval rating since Gallup started asking the question in 1992. All politicians and elected officials have been seen in a negative light over the last few weeks, President Obama included, but the Republicans are the ones who are getting hit the hardest.

While Republicans can't catch a break in any poll or survey, President Obama has found some light at the end of the tunnel. In a recent right-wing leaning Rasmussen poll, President Obama's approval has actually increased to 51 percent. With the Tea Party pulling the Republican party further and further to the political right, the majority of the American people are turned off the party as a whole. In those who don't aligned themselves with the Tea Party are frustrated, viewing conservative moderates as weak for bowing the many of the radical demands from the Tea Party caucus.

The wave of the Tea Party rushed into Congress in 2010 during the midterm elections and far right conservatives cheered with joy. Since then, nothing much has happened in Washington as the Tea Party has been hell bent on obstructing any and everything that President Obama tries to gain traction on. Following the record filibusters used by Republicans in Congress during President Obama's first two years in office, the Tea Party stepped up their game and have done everything in their power to prevent the president's attempt at improving the country.

With the Tea Party pulling the strings of House Speaker John Boehner and the entire GOP, one must ask whether the Tea Party is actually turning into a good thing politically for President Obama and the Democratic party. With all eyes focused on Washington and the government shutdown, the Tea Party is drawing attention that only shines a negative light on the conservative movement in the United States. President Obama and Democrats are reeking the benefits of the radical side of the Republican party and it is showing in the polls.

March 05 2014 at 5:33 PM Report abuse +2 rate up rate down Reply
1 reply to teaparty2implode's comment
teaparty2implode

Mitt Romney trying to appeal to the tea party. I'm severely conservative.........

March 05 2014 at 5:37 PM Report abuse rate up rate down Reply