February jobs report shows big gains

February+jobs+report+shows+big+gains

Mike Finnegan

A report released from the ADP Research Institute on Wednesday of this week shows massive job gains in the U.S. economy last February. According to the report, 37,000 more jobs were added to the already tight labor labor market in February than in January. 

ADP’s work also shows a switch in the trend of substantial job gains coming solely from the professional services sector, as over 100,000 of the 298,000 jobs created last month came from the construction, manufacturing and mining industries.

The report holds significant political and economic implications, as the job gains follow President Trump’s first full month in office and precede next week’s FOMC meeting.

“Confidence is playing a large role,” chief economist of Moody’s Analytics Mark Zandi said to CNBC. “Businesses are anticipating a lot of good stuff — tax cuts, less regulation. They are hiring more aggressively.”

The growing economy has spurred the probability of an interest rate hike next week by the Federal Reserve up to 91 percent, according to CNBC. This would be the third interest rate hike in 10 years and the second hike since Dec. 2016.