Employment is set to increase as the hot job market threatens to overheat, according to the ADP and Moody’s Analytics National Employment Report.
February will post a gain of 235,000 jobs, according to the report. This is an increase from January’s increase of 200,000 jobs. This is also up slightly from ADP’s prediction for January, which forecasted jobs would increase by 234,000 jobs.
“The job market is red hot and threatens to overheat,” Moody’s Analytics Chief Economist Mark Zandi said. “With government spending increases and tax cuts, growth is set to accelerate.”
But because ADP often revises its numbers significantly, its reported job growth should be taken as a general direction of the market, but not a specific forecast of the number of jobs added on any given month.
The chart below shows the jobs report tends to follow the general trend of ADP’s employment report.
Click to Enlarge
The goods-producing sector is set to increase by 37,000 jobs overall, with changes in the following areas:
Natural resources and mining: Increase 2,000
Construction: Increase 21,000
Manufacturing: Increase 14,000
The service-providing sector is set to increase by about 198,000 jobs, with changes in these areas:
Trade, transportation and utilities: Increase 44,000
Information: Decrease 1,000
Financial activities: Increase 9,000
Professional and business: Increase 46,000
Education and health: Increase 43,000
Leisure and hospitality: Increase 50,000
Other services: Increase 7,000
“The labor market continues to experience uninterrupted growth,” said Ahu Yildirmaz, ADP Research Institute vice president and co-head. “We see persistent gains across most industries with leisure and hospitality and retail leading the way as consumer spending kicked up.”
“At this pace of job growth employers will soon become hard-pressed to find qualified workers,” Yildirmaz said.