ADP – 139,000 private-sector jobs added* in February

posted at 2:01 pm on March 5, 2014 by Steve Eggleston

Payroll processor ADP reported that the private sector added 139,000 jobs on a seasonally-adjusted basis in February, well below the economists’ expectations of 150,000-160,000 jobs added. CNBC, predictably, blamed the continued cold weather in February:

The U.S. economy saw modest private sector job creation in February, a closely watched labor market barometer showed on Wednesday, as pervasive cold weather appeared to restrain hiring.

Employers added 139,000 private sector jobs, payroll processor ADP said in its monthly National Employment Report, a figure below Wall Street’s expectations of 160,000, and only slightly stronger than January’s pace of 127,000, which was revised down from 175,000.

The January downward revision is a rather massive one. Tom Blumer noted the extent of what appears to be ADP’s annual revision of its data:

Whoa — this was a big month for prior-month knockdowns:
– January went from 175K to 127K.
– December went from 227K to 191K.
– November went from 289K to 245K.
– October went from 206K to 196K.

That’s a combined reduction of 138,000 jobs from the four previous months.

Going back further, the four previous months (June through September 2013) were revised up by a combined 12K. February through May revisions totaled +48K.

The downward revisions for the 4 months prior to February all but wiped out the one-month increase from January to February. Taking the entirety of the prior 12 months into account, the number of private-sector jobs by ADP’s measure increased by 2,165,000 from February 2013 to 115,843,000. That is still 128,000 fewer than the pre-recession peak of 115,972,000 private-sector jobs in January 2008.

Meanwhile, after reporting that their manufacturing index for February rose to a better-than-expected 53.2 from January’s 51.3 earlier in the week, the Institute for Supply Management reported that their service index for February fell from 54 to a worse-than-expected 51.6. Reuters noticed a worse trend in today’s release – employment in the services sector:

Growth in the U.S. services sector slowed in February, coming in below forecasts as the employment index fell into contractionary territory for the first time in more than two years, an industry report showed on Wednesday.

The Institute for Supply Management said its services sector index fell to 51.6 last month, the worst read for the index since February 2010 as bad weather impacted business activity….

The employment index dropped in February to 47.5 from 56.4, falling below 50 for the first time since December 2011. It was the lowest read for the subindex since March 2010.

Reuters, immediately before reporting on the ISM services employment index, noted that 50.0 is considered the division point between expansion and contraction in the ISM index. Given the manufacturing index rose by more than expected, the weather claims for all that ills the economy, repeated by Reuters as the reason for the drop in the ISM services sector index, ring hollow.

Case in point – Radio Shack is planning to close up to 1,100 stores, a fifth of its total and a fourth of the company-owned stores, after weak holiday sales left it with a $400 million loss last year. The Wall Street Journal notes that this is significantly more than the 200 stores Radio Shack originally wanted to close and the 500 stores it was thinking about closing last month.


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Hard pivot

Recovery Summer

Green Shoots

Shovel Ready

Booooooosh!

Murphy9 on March 5, 2014 at 2:03 PM

unexpected..

TCrez on March 5, 2014 at 2:03 PM

Coming soon, Pivot to Economy XCVI, focused like a “death star” laser beam on Jobs, etc.

Of this I have no doubt. Obama’s willing to do anything to get his impotence with Putin off the front page.

ConstantineXI on March 5, 2014 at 2:06 PM

Not at Radio Shack….

viking01 on March 5, 2014 at 2:07 PM

Case in point – Radio Shack is planning to close up to 1,100 stores, a fifth of its total and a fourth of the company-owned stores, after weak holiday sales left it with a $400 million loss last year.

The rest will close too. Its only a matter of time.

The very reason for Radio Shack’s existence is no longer available in their stores, parts.

cozmo on March 5, 2014 at 2:08 PM

…and you know…that will eventually be updated………….downward!

KOOLAID2 on March 5, 2014 at 2:08 PM

Case in point – Radio Shack is planning to close up to 1,100 stores, a fifth of its total and a fourth of the company-owned stores, after weak holiday sales left it with a $400 million loss last year. The Wall Street Journal notes that this is significantly more than the 200 stores Radio Shack originally wanted to close and the 500 stores it was thinking about closing last month.

Guess that 1980′s themed Super Bowl ad didn’t help.

Doughboy on March 5, 2014 at 2:08 PM

The Wall Street Journal notes that this is significantly more than the 200 stores Radio Shack originally wanted to close and the 500 stores it was thinking about closing last month.

How in the hell does Radio Shack even stay in business?

But of course more bad economic news about jobs can only mean one thing. A pivot to Ukraine!

Happy Nomad on March 5, 2014 at 2:10 PM

Guess Al Gore ain’t Hiring at the Global Warming Ice Plant

roflmmfao

donabernathy on March 5, 2014 at 2:11 PM

Next flashy thingy to divert attention is a renewed push for gun control.

rmkdbq on March 5, 2014 at 2:12 PM

October 95% of the original total, so o.k.
November 85% incompetence or fraud?
December 84% incompetence or fraud?
January 73%. I’m calling this “just making s(tuff) up.

They’re getting worse at new job counting.

rbj on March 5, 2014 at 2:13 PM

Unexpectedly!

rjoco1 on March 5, 2014 at 2:16 PM

Weatherization and…something. I forget.

tree hugging sister on March 5, 2014 at 2:16 PM

What did you expect… the government’s retraining classes don’t teach the “would you like fries with that order” until the last semester.

roflmmfao

donabernathy on March 5, 2014 at 2:18 PM

And yet Obama’s numbers are still much higher than they should be, with the number 1 issue being the economy. It makes no sense. Why is he not in the 30s by now?

Jack_Burton on March 5, 2014 at 2:18 PM

And yet Obama’s numbers are still much higher than they should be, with the number 1 issue being the economy. It makes no sense. Why is he not in the 30s by now?

Jack_Burton on March 5, 2014 at 2:18 PM

Judicial blindness.

Murphy9 on March 5, 2014 at 2:20 PM

And yet Obama’s numbers are still much higher than they should be, with the number 1 issue being the economy. It makes no sense. Why is he not in the 30s by now?

Jack_Burton on March 5, 2014 at 2:18 PM

because you can phrase poll questions any way you want. And the media covers for him. 8 years of media hatred for Bush and 5 years of media love for Obama and they have about the same numbers.

oldroy on March 5, 2014 at 2:21 PM

A long time ago, I worked at Radio Shack. For 3 months. Never bought anything there after I left that job. Now I wonder who buys things there.

22044 on March 5, 2014 at 2:22 PM

Radio Shack seems to stay in business peddling cellphones to welfare queens.

After Obamaphones that seems in flux.

It’s a shame how an electronics firm that used to cater to taxpaying hobbyists now seems to have more idlers standing around than TSA.

viking01 on March 5, 2014 at 2:22 PM

The rest will close too. Its only a matter of time.

The very reason for Radio Shack’s existence is no longer available in their stores, parts.

cozmo on March 5, 2014 at 2:08 PM

I went in to a store before they had their 80s ad and they didn’t even have a part that to me seemed to be an average and mundane part that they should have, but your average Walmart wouldn’t have. They actually told about about some random computer store that I had never heard of and it wasn’t even a strict computer part, I would consider it an audio part.

MobileVideoEngineer on March 5, 2014 at 2:22 PM

And yet Obama’s numbers are still much higher than they should be, with the number 1 issue being the economy. It makes no sense. Why is he not in the 30s by now?

Jack_Burton on March 5, 2014 at 2:18 PM

Not enough racists in society. ;0

Happy Nomad on March 5, 2014 at 2:24 PM

…and you know…that will eventually be updated………….downward!

KOOLAID2 on March 5, 2014 at 2:08 PM

That would be unexpected.

Lanceman on March 5, 2014 at 2:25 PM

Part of Radio Shack’s self-defeat is unRealistic (pun optional) pricing.

For example, a PRAM battery commonly used on most pre-2005 or so Macs can be easily had for about five bucks on the internet.

Radio Shack’s price last time I checked: $19.99

viking01 on March 5, 2014 at 2:25 PM

The job market sucks. My husband was laid off about over a month ago and he hasn’t had a single bite yet. He told me this morning that he was getting job alerts with openings in his field every morning and afternoon but over the last week he has gotten only a couple. It also seems like a buyers market with employers offering very low wages and many no healthcare insurance.

Lucy43 on March 5, 2014 at 2:26 PM

These monthly revisions should be called what they are….and if bullsh!t isn’t acceptable lies certainly fit. And it barely gets a peep.

Cindy Munford on March 5, 2014 at 2:27 PM

Unexpectedly!

rjoco1 on March 5, 2014 at 2:16 PM

I didn’t check the Associated Press for that word. I’m guessing we’ll see that Friday.

October 95% of the original total, so o.k.
November 85% incompetence or fraud?
December 84% incompetence or fraud?
January 73%. I’m calling this “just making s(tuff) up.

They’re getting worse at new job counting.

rbj on March 5, 2014 at 2:13 PM

ADP has always been a bit high on their surveys compared to the BLS surveys and the Quarterly Census of Employment and Wages.

Speaking of revisions, Tom revised his post – the June-September 2013 net revision was +122K, not the +12K I had quoted.

Steve Eggleston on March 5, 2014 at 2:27 PM

And yet Obama’s numbers are still much higher than they should be, with the number 1 issue being the economy. It makes no sense. Why is he not in the 30s by now?

Jack_Burton on March 5, 2014 at 2:18 PM

White guilt and not wanting to be called a racist. There is zero-tolerance for those that don’t like our historic Nobel prize winning first black president.

Lucy43 on March 5, 2014 at 2:29 PM

As Harry Reid would say, “LIES! ALL LIES!

GarandFan on March 5, 2014 at 2:32 PM

I am going to make jobs my number one priority in 2014…

-B. Hussein YOmamma

RedManBlueState on March 5, 2014 at 2:33 PM

For example, a PRAM battery commonly used on most pre-2005 or so Macs can be easily had for about five bucks on the internet.

Radio Shack’s price last time I checked: $19.99

viking01 on March 5, 2014 at 2:25 PM

So…… unless you work for the Smithsonian, why on earth would you be trying to keep a pre-2005 Mac alive? ;0

But seriously, between the internet and big box retailers what does Radio Shack offer that keeps the doors open.

Happy Nomad on March 5, 2014 at 2:34 PM

I am going to make jobs my number one priority in

2009
2010
2011
2012
2013
2014…

-B. Hussein YOmamma

RedManBlueState on March 5, 2014 at 2:33 PM

Fixed for historical accuracy. The rat-eared coward has been all hat and no horse when it comes to delivering on jobs.

Happy Nomad on March 5, 2014 at 2:36 PM

October 95% of the original total, so o.k.
November 85% incompetence or fraud?
December 84% incompetence or fraud?
January 73%. I’m calling this “just making s(tuff) up.

They’re getting worse at new job counting.

rbj on March 5, 2014 at 2:13 PM

No, they just have to continue to cover for the downward trend. If people continue to see a dramatic downward trend they’ll realize that we aren’t in a recovery.

On a somewhat related note, I updated my resume at the beginning of the week on some of the job boards and I of course get bombared with calls and emails about jobs from recruiters, but at least 95% of them are contract or contract-to-hire positions. Now why in the world would I want a contract position when I’m currently in a permanent position?

MobileVideoEngineer on March 5, 2014 at 2:36 PM

CNBC, predictably, blamed the continued cold weather in February

So is the weather racist for preventing people from working? Or hopeychange-awesome because it kept people out of “joblock?”

Effay5 on March 5, 2014 at 2:43 PM

Case in point – Radio Shack is planning to close up to 1,100 stores

So this is what they meant with the “back to the 80′s” superbowl ad…

Effay5 on March 5, 2014 at 2:45 PM

The dems think raising the minimum wage is a winner and vote getter that will put people back to work.

docflash on March 5, 2014 at 2:46 PM

Its been well over five years, and every year, Hopey comes
up with “Shovel Ready Infrastructure” Jobs Programs,

and every Job Creation Speechy, its *Ground Hog Day*, …ProgressiveTard
Style!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

OH,..speaking of Speechys,….VOILA:

Mark Knoller ‏@markknoller 37s

Pres Obama suspects some Republicans oppose raising the federal minimum wage just because he’s for it.
Expand

Reply
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Mark Knoller ‏@markknoller 2m

“My goal is to help lift wages, help lift take home pay in anyway we can,” says Pres Obama of his efforts to raise the federal minimum wage.
Expand

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Mark Knoller ‏@markknoller 3m

Pres Obama gives a thumbs up to Central Connecticut State Univ students at minimum wage speech. pic.twitter.com/cxdAOfn2Kt

https://twitter.com/markknoller/status/441297433411088385/photo/1/large

canopfor on March 5, 2014 at 2:47 PM

So…… unless you work for the Smithsonian, why on earth would you be trying to keep a pre-2005 Mac alive? ;0

But seriously, between the internet and big box retailers what does Radio Shack offer that keeps the doors open.

Happy Nomad on March 5, 2014 at 2:34 PM

That’s just an example, of course. I like my old Mac SE 30 and stack of other oldies which can boot in 15 seconds tops whilst the the newer ones take much longer.

Many people like antique radios etc. and keeping old electronics running (with repair parts) used to be the core of Radio Shack’s components business.

Now for most of their stock the office supply stores are more competitive.

viking01 on March 5, 2014 at 2:51 PM

Speaking of Infrastructure,…”Shovel Ready Jobs Sh*t”,..from less than
three weeks ago:
==================

Mark Knoller ‏@markknoller Feb 26

“There’s no faster way or better way for Congress to create jobs right now,” than starting and finishing more transp projects, says POTUS.
Expand

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Mark Knoller ‏@markknoller Feb 26

“Roads and bridges should not be a partisan issue,” says Pres Obama in advocating more job-creating transportation infrastructure projects.
Expand

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Mark Knoller ‏@markknoller Feb 26

Pres Obama cites renovation of Union Depot in St Paul – his speech venue – as a transp infrastructure project that created 4,000 jobs.
Expand

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Mark Knoller ‏@markknoller Feb 26

Pres Obama says he’ll seek to pay for his transportation infrastructure funding bill by closing “wasteful tax loopholes.”
Expand

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Mark Knoller ‏@markknoller Feb 26

Pres Obama says rebuilding infrastructure is vital to business. Says it creates good paying jobs that “cannot be outsourced.”
Expand

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Mark Knoller ‏@markknoller Feb 26

Pres Obama says other countries trying to outbuild the US on infrastructure to attract more business and jobs.
Expand

Mark Knoller ‏@markknoller Feb 26

Pres Obama takes stage at Union Deport in St Paul for transp infrastructure speech. pic.twitter.com/So87upnmRj

canopfor on March 5, 2014 at 2:51 PM

STEVE EGGLESTON

…good to see that!

KOOLAID2 on March 5, 2014 at 2:54 PM

Look at the bright side the job lock situation is improving retroactively while the artist, poet and stay at home mom communities are growing at a rate never before seen in our history. Finally we have the time to contemplate our situation without that work thing getting in the way. I can only imagine what is in store next with all this great hope and change.

tej on March 5, 2014 at 2:56 PM

“It is time to give America a raise…”

Obama today at some university.

This mfer is no different that Hugo Chavez.

Murphy9 on March 5, 2014 at 3:02 PM

Payroll processor ADP reported that the private sector added 139,000 jobs on a seasonally-adjusted basis in February, well below the economists’ expectations of 150,000-160,000 jobs added. CNBC, predictably, blamed the continued cold weather in February:

The weather?

I can hear Jay Carney now, standing at the podium, and proudly announcing that 11K – 21K fewer people than were expected decided to risk becoming job locked in February 2014.

Athos on March 5, 2014 at 3:06 PM

…good to see that!

KOOLAID2 on March 5, 2014 at 2:54 PM

Dustin and I are in for a couple posts a day during CPAC while Ed’s busy covering it and getting some killer interviews.

Steve Eggleston on March 5, 2014 at 3:08 PM

Look at the bright side the job lock situation is improving retroactively while the artist, poet and stay at home mom communities are growing at a rate never before seen in our history. Finally we have the time to contemplate our situation without that work thing getting in the way. I can only imagine what is in store next with all this great hope and change.

tej on March 5, 2014 at 2:56 PM

Or at least the artist and poet commuities are growing. Males and females have been departing the workforce at roughly the same rate over the last 5 years.

Steve Eggleston on March 5, 2014 at 3:10 PM

Whoa — this was a big month for prior-month knockdowns:
– January went from 175K to 127K.
– December went from 227K to 191K.
– November went from 289K to 245K.
– October went from 206K to 196K.

That’s a combined reduction of 138,000 jobs from the four previous months.

I’m sorry, all of the last four months were revised downward by as much as 20%? At what point does the BLS just say they are pretty much making $hit up at this point?

Johnnyreb on March 5, 2014 at 3:11 PM

How in the hell does Radio Shack even stay in business?

By selling to people who don’t like to shop line me.

I use a portable radio every day. They have one that fits in my shirt pocket which gets more channels & clearer reception than other radios I had. A friend sent me there because he said the key to getting good reception was in the tuner. I get batteries there as well. You’re in and out.

Super Walmart, Radio Shack, and Sheetz convenience stores are about it for me.
I went to a mall for the first time in about 10 years a few weeks ago to get my daughters cell phone screen fixed.
It was a guy in a booth.

My family likes to shop so I guess it works out.

frank on March 5, 2014 at 3:12 PM

I’m sorry, all of the last four months were revised downward by as much as 20%? At what point does the BLS just say they are pretty much making $hit up at this point?

Johnnyreb on March 5, 2014 at 3:11 PM

I’ll get back to you in April when the BLS does its annual benchmarking as part of the March jobs report. This is ADP’s annual revisions, done to bring it in line with the BLS establishment survey.

Steve Eggleston on March 5, 2014 at 3:18 PM

They started fracking here a bit ago. Pipe mills are expanding (one to the tune of over a billion) and a few new places have moved here.

I wouldn’t say it’s perfect but it’s a lot better than it was. I’m told one can make $89,000 as a team member (which I believe is new speak for Mill Hunky.). Some of that $89k is bonus money but I’m not sure the amount.

frank on March 5, 2014 at 3:25 PM

New hotels are being built & the existing hotels as well as restaurant are packed with trucks from Texas.

The Pipefitters local is at 100% employment. Both county Ibews commercial guys are at 100% & out of towners as well. (A few Ibew guys I know worked 7 days a week for a couple of years on the new pipe mill. My nephew tried to get in but they only took 4 people. I thought that was weird so I asked my buddy. He said there’s a bunch of geezers on the books who don’t work but won’t retire. Not sure why they’d do that.)

There is a new racino being built as well.

frank on March 5, 2014 at 3:38 PM

Phewwww. That means less job-lock was initiated in February!!

That job-lock is a problem. I’m so glad Obama’s solving it!

Axeman on March 5, 2014 at 4:03 PM

How in the hell does Radio Shack even stay in business?

Really, they are the most convenient place for legacy communications. It’s the only place I’ve been able to find a pin grabber for “pinning out” serial plugs. And the only place to find serial kits.

There are plenty of factories and warehouses where there really is not enough rate of return to upgrade working production IT.

Axeman on March 5, 2014 at 4:07 PM

They will blame the heat waves in the Summer.

I guess they’ll have to blame the excessive sunshine in Spring then. Oh, wait – they can blame pollen! Work allergies.

RSbrewer on March 5, 2014 at 4:30 PM

So how many of those jobs were full time, and how many were 0scare compliant part time?

dentarthurdent on March 5, 2014 at 4:33 PM

Phewwww. That means less job-lock was initiated in February!!
That job-lock is a problem. I’m so glad Obama’s solving it!

Axeman on March 5, 2014 at 4:03 PM

Poetry writing industry is just going gang-busters!!!!!

dentarthurdent on March 5, 2014 at 4:34 PM

So how many of those jobs were full time, and how many were 0scare compliant part time?

dentarthurdent on March 5, 2014 at 4:33 PM

ADP doesn’t report the full-time vs part-time breakdown. That is breakdown is only in the BLS/Census Current Population Survey, which counts those who work at least 35 hours per week versus those who work less than 35 hours per week, as well as those who have multiple part-time jobs as part of its measure of those who hold multiple jobs.

Steve Eggleston on March 5, 2014 at 5:11 PM

Pivot!

tanked59 on March 5, 2014 at 5:47 PM

Case in point – Radio Shack is planning to close up to 1,100 stores, a fifth of its total and a fourth of the company-owned stores, after weak holiday sales left it with a $400 million loss last year.

Best Buy is closing some also.

The very reason for Radio Shack’s existence is no longer available in their stores, parts.

cozmo on March 5, 2014 at 2:08 PM

When they first got here to New England they sold to electronics hobbyists and audio enthusiasts. Stereos, speakers, parts, tubes, kits. Great days. Fewer and fewer pursue hobbies of any kind anymore.

ADP’s guestimate will turn out to be high -again-. Not that it matters. The government will lie -again-.

Pivot!

tanked59 on March 5, 2014 at 5:47 PM

Don’t you mean pirouette?

dogsoldier on March 5, 2014 at 5:59 PM

dogsoldier on March 5, 2014 at 5:59 PM

Yep, much better….

tanked59 on March 5, 2014 at 6:19 PM

Those who’s unemployment benefits have run out will be glad to hear the job market is doing so well.

Oxymoron on March 5, 2014 at 6:46 PM