The labor force may be on the road to revving up as United States businesses continued to add jobs in the past month, which could give the Federal Reserve renewed confidence to raise interest rates this summer.
According to the February ADP Small Business Report, private employers hired 212,000 workers last month, and since the end of 2013, businesses have created 2.8 million jobs. Although this is still a positive sign of the overall workforce, economists had projected a jobs gain of 220,000.
Small businesses were great contributors to the jobs numbers. The report noted that companies with one to 19 employees added 39,000 jobs, while enterprises with 20 to 49 employees produced 55,000 jobs.
When it came to down the sector, service providing had the edge compared to goods producing. The former created between 31,000 and 79,000 (based upon one to 49 staff members) and the ladder hired between 7,000 and 15,000 employees.
Franchise jobs, meanwhile, also made a dent in the employment statistics. As part of ADP’s National Franchise Report, about 29,000 private sector franchise jobs were added to the economy.
“Franchise job gains in February were up slightly from January and continued above the twelve-month average,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute, in a statement. “Employment increased despite the fact that Restaurant jobs were down by almost half from last month.”
The ADP’s jobs report is usually an indicator as to what economists could expect from the Department of Labor, which is scheduled to release its jobs data at the end of this week. According to the USA Today, economists are predicting 240,000 additional payroll jobs and an unemployment rate of 5.6 percent – it should be noted, however, that jobs reports are usually revised upwards or downwards two months after its initial release.
In any case, the forecasts would see both numbers down from 257,000 job creations and a 5.7 percent jobless rate.