The number of employees at U.S. businesses rose in February by less than expected, underscoring the labor market’s struggle to recover despite a decline in Covid-19 infections in recent weeks.
Company payrolls rose by 117,000 during the month, according to ADP Research Institute data released Wednesday. The median projection in a Bloomberg survey of economists called for an increase of 205,000. The prior month was revised up to a 195,000 advance.
The figures suggest that employment gains continue to be held back by pandemic-related constraints on businesses and economic activity. Even so, many economists expect a meaningful improvement in the labor market in the coming months as Covid-19 vaccinations pick up and virus concerns ease.
“The labor market continues to post a sluggish recovery across the board,” Nela Richardson, ADP’s chief economist, said in a statement. “We’re seeing large-sized companies increasingly feeling the effects of Covid-19, while job growth in the goods producing sector pauses.”
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{Matzav.com}
Back to the Obama era economic doldrums.