The United States private sector new jobs increased by 475,000 in February 2022 (United States ADP Employment Change). This number beat market expectations that anticipated a 388,000 rise, throwing in some positive news on the U.S. economy that is grappling with record inflation and the fear of supply chain disruptions as the war in Ukraine rages on.
In January 2022, the United States private sector new jobs decreased by 301,000.
Contributing to the latest increase in the U.S. private sector employment is the service-providing sector, which added 417,000 new jobs. The service sector comprises of leisure & hospitality sector, which added the most jobs, at 170,000, and the trade, transportation & utilities sector, which added 98,000 new jobs.
Other contributing service sectors include the professional & business sector (72,000), and education & health (40,000). Finally, the goods-producing sector added 57,000 new jobs. It was boosted by rises in manufacturing and construction at 30,000 apiece.
The growth in the leisure and hospitality sectors is a welcome development as the world continues to emerge from COVID-19 restrictions. This also comes as the number of flights and hotel room bookings across the world are both picking up for the first time since the pandemic struck in early 2020.
In conclusion, as much as growth in new jobs is a welcome phenomenon, this, however, revives concerns about inflation and how the Federal Reserve would likely respond by raising interest rates. Markets have been anticipating Fed rate hikes for some time now. But Fed officials have kept coming up with the reasons not to – citing the ‘next’ sitting(s) as the best time to do so.