The year is off to a sizzling start for job creation, according to the ADP counts. January added 261,000 positions, a number that was revised upward from the originally reported 246,000.
Employment in the private sector surged by 298,000 for the month of February, with goods producers adding 106,000, ADP and Moody's Analytics said. Construction jobs swelled by 66,000 and manufacturing added 32,000.
This total shattered market expectations of 190,000, according to economists surveyed by ADP. The blockbuster report also solidified market expectations for the Fed to hike interest rates next week. Probability for an increase jumped to 91 percent after the release, according to the CME.
The report encompassed the first full month under President Donald Trump, who has pledged to rebuild the nation's aging infrastructure system.
In addition to the construction and manufacturing positions, mining and natural resources also contributed 8,000 to the total. Trump has promised to restore mining jobs as well.
AZ Unemployment Rate Remains at 5.0%
Arizona’s most recent seasonally adjusted unemployment rate remained unchanged at 5.0% in December and 5.0% in January. The U.S. seasonally adjusted unemployment rate increased one-tenth of a percentage point from 4.7% in December to 4.8% in January. A year ago, the Arizona seasonally adjusted rate was 5.5% and the U.S. rate was 4.9%.
Over the Month
Arizona shed 56,700 Nonfarm jobs (-2.0%) in January. This was more than the post-recessionary (’10-’16) average loss of 51,700 jobs. The Private Sector lost 43,000 jobs (-1.8%). Historically, (’10-’16) the Private Sector averages employment losses of 43,000 jobs in January. None of the eleven sectors posted gains. One sector, Natural Resources and Mining, saw neither gains nor losses. Ten sectors reported losses. Losses were recorded in Information (-200 jobs); Manufacturing (-400 jobs); Financial Activities (-500 jobs); Other Services (-1,400 jobs); Construction (-1,400 jobs); Education and Health Services (-1,700 jobs); Leisure and Hospitality (-3,000 jobs); Government (-13,700 jobs); Professional and Business Services (-16,400 jobs); and Trade, Transportation, and Utilities (-18,000 jobs).
Over the Year
Arizona Nonfarm employment grew by 2.0% (53,700 jobs) over the year in January. The Private Sector accounted for 54,700 jobs (2.4%). Government employment declined by 1,000 jobs in January. Seven of the eleven sectors reported job gains and four had losses. The sectors with the largest gains included Leisure and Hospitality (14,400 jobs); Education and Health Services (12,900 jobs); and Financial Activities (10,100 jobs). Gains were also recorded for Professional and Business Services (7,800 jobs); Trade, Transportation, and Utilities (6,200 jobs); Construction (4,000 jobs); and Manufacturing (2,200 jobs). Job losses were reported in Natural Resources and Mining (-300 jobs); Information (-300 jobs); Government (-1,000 jobs); and Other Services (-2,300 jobs).
The full report and PPT slides can be found at www.laborstats.az.gov.