Private sector employment shows decline in February
Nonfarm Private Employment Highlights – February Report:
Small businesses* +15,000
Medium businesses** -4,000
Large businesses*** -34,000
Goods-producing sector: -70,000
Service-providing sector: +47,000
• Manufacturing industry: -40,000
* Small businesses represent payrolls with 1-49 employees
** Medium businesses represent payrolls with 50-499 employees
*** Large businesses represent payrolls with more than 499 employees
According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "Nonfarm private employment declined 23,000 from January to February 2008 on a seasonally adjusted basis, according to the ADP National Employment Report. The estimated change in employment from December 2007 to January 2008 was revised down 11,000 to 119,000. February's decline of 23,000 signals a deceleration of employment growth across businesses of all sizes."
Prakken added, "Employment in the service-providing sector of the economy grew 47,000, while employment in the goods-producing sector declined 70,000, the fifteenth consecutive monthly decline. Manufacturing employment fell 40,000 in February after declining a revised 3,000 in January, and marked the eighteenth consecutive monthly decline.
"Most of the decline in employment during February was accounted for by job losses at large companies, but there was a notable deceleration of employment growth at businesses of all sizes. Employment among small-size businesses, defined as those with fewer than 50 workers, advanced just 15,000 during the month, while employment among medium-size businesses with between 50 and 499 workers dropped 4,000. This was the first outright decline at medium-size businesses since June of 2003, when job growth was still recovering from the last recession. Employment at large businesses with more than 500 workers declined 34,000," said Prakken.
Prakken went on to say, "Two sectors of the economy hit hardest by recent problems in mortgage markets have been residential construction and financial activities related to home sales and mortgage lending. In February, construction employment fell 30,000. This is the fifteenth consecutive monthly decline, bringing the total decline in construction jobs since the peak in August 2006 to 236,000. Employment in financial activities declined by 5,000."
You can read the complete February report .