February Job Growth Surges with 63,000 New Positions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy ADP?
Source: Newsfilter
- Job Growth Surge: In February, companies added 63,000 workers, a significant increase from the downwardly revised 11,000 in January and surpassing the consensus estimate of 48,000, indicating a recovery in the labor market.
- Sector Concentration Issue: Job creation was heavily concentrated in education and health services, which added 58,000 positions, and construction, which contributed 19,000, while most other sectors experienced stagnation or declines, highlighting a lack of breadth in employment growth.
- Wage Growth Trends: Pay for job stayers grew by 4.5%, unchanged from January, while wage gains for job switchers fell to 6.3%, indicating a reduced incentive for changing jobs to the lowest level since ADP began tracking this metric, potentially affecting future labor mobility.
- Small Business Dominance: The majority of new jobs came from small businesses with fewer than 50 employees, which added 60,000 positions, while large firms added only 10,000, demonstrating the resilience of small enterprises in the current economic climate.
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Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 226.240
Low
230.00
Averages
276.83
High
332.00
Current: 226.240
Low
230.00
Averages
276.83
High
332.00
About ADP
Automatic Data Processing, Inc. is a provider of cloud-based human capital management (HCM) solutions. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers’ compensation program. Its compensation management software supports the compensation planning needs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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