America’s private sector effected 214,000 new hires in February according to the latest report from private payrolls company ADP. The number was better-than-expected beating consensus forecasts for 190,000 but it highlighted concerns over the types of jobs being created.

According to the report, most of the new hires came from within the service sector. Manufacturing, which has been contracting for several months, saw 9,000 jobs lost adding weight to widely-held beliefs that low-paid, part-time service sector roles are dominating the jobs market.

The ADP report is typically released 2 days before the closely-watched nonfarm payrolls from the Labor Department and is not considered market-moving but, on occasion, it has prompted analysts to adjust their expectations for the official data.

“The ADP number is, for the most part, ignored and quite rightly so since the difference between it and the official Labor Department number is often significant. We think the nonfarm payrolls will come in largely in line with expectations but we expect it to confirm that the type of jobs being created don’t pay enough to help consumers play a more active role in what is already a long-in-the-tooth economic recovery,” said Harry Coolidge, a senior economist at Mizuho Corporate Global.

Fears that the US economy is in danger of tipping into a recession have been alleviated in recent weeks by encouraging data in the form of an upwardly-revised 4th quarter GDP reading and better manufacturing and consumer spending.

“Despite the better data, Mizuho Corporate Global’s investing as if there will be no further interest rate hikes this year,” confirmed Coolidge.

About Mizuho Corporate Global:
Mizuho Corporate Global is an independent, full-service brokerage, wealth management and business management concern dedicated to providing pioneering capital appreciation and wealth preservation solutions to affluent individuals and families and businesses.

Without exception, they place the welfare of their clients first and foremost and they take great pride in knowing that they are the first port of call for their investment and financial affairs. They constantly exceed our clients’ expectations by going the extra mile to deliver the service and, most importantly, the returns on investment their patronage demands.