News / Economy

    US Private-Sector Hiring Breaks Out of Winter Freeze

    FILE - A crowd of job seekers attends a health care job fair  in New York, March 14, 2013.
    FILE - A crowd of job seekers attends a health care job fair in New York, March 14, 2013.
    Reuters
    U.S. companies stepped up hiring in March for a second straight month, offering fresh evidence the economy was regaining momentum after a weather-driven lull over the winter.
     
    Private employers added 191,000 workers to payrolls last month and 39,000 more were added in February than previously believed, payrolls processor ADP said on Wednesday.
     
    The signs of solid hiring added to a steady stream of fairly upbeat data that suggests the economy started to accelerate as the grip of an unusually cold winter began to loosen and helps  keep hopes alive that the U.S. economy's performance in 2014 will be its best since the recession ended almost five years ago.
     
    “Whatever impact the weather was having is starting to dissipate and we are starting to see the economy gain traction,” said Sam Bullard, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.
     
    The report, which is jointly developed with Moody's Analytics, was released ahead of the government's more comprehensive report on employment on Friday.
     
    That report is expected to show nonfarm payrolls rose by 200,000 in March, the largest gain in four months, according to a Reuters poll of economists. The poll was taken before the ADP data was released, but many economists said the ADP report did not shift their views.
     
    A separate report showed small business hiring increased for a sixth straight month in March. The National Federation of Independent Business said small business employment increased by an average of 0.18 worker per firm, up from 0.11 in February.
     
    Prices for U.S Treasury debt fell on the signs of quickened hiring, while the dollar rose against a basket of currencies. Stocks on Wall Street were trading modestly higher.
     
    Signs of improvement in the labor market will be welcomed by the Federal Reserve, which has been scaling back its monthly bond-buying program in a vote of confidence in the economy.
     
    The show of labor market strength could heighten speculation on the timing of the U.S. central bank's first interest rate increase. It has held benchmark overnight lending rates at a record low of zero to 0.25 percent since December 2008.
     
    “For the Fed, employment growth in the 200,000 to 225,000 range will be seen as good enough to justify their current bias for tapering and a pivot towards a 2015 start to policy tightening,” said Millan Mulraine, deputy chief economist at TD Securities in New York.
     
    Factory orders rebound

     
    The unusually cold and snowy winter was just one factor that hobbled the economy at the end of 2013 and the start of this year. Growth also took a knock from businesses placing fewer orders with manufacturers while working through a pile of unsold goods, and from the temporary drag from the expiration of long-term unemployment benefits and cuts to food stamps.
     
    These factors are expected to lower growth to an annualized pace below 2 percent in the first quarter. The economy expanded at a 2.6 percent rate in the last three months of 2013.
     
    Signs of an economic thaw were also evident in a separate report from the Commerce Department that showed new orders for manufactured goods jumped 1.6 percent in February, the biggest rise since September.
     
    However, January's orders were revised to show a larger 1.0 percent drop from a previously reported 0.7 percent fall.
     
    Inventories at factories rose 0.7 percent in February, the biggest increase since October 2011. Bullard said that was likely because other businesses were holding the line on their inventory, leaving a buildup at factories.
     
    In another upbeat economic sign, shipments from factories increased 0.9 percent, the largest rise since last July.

    You May Like

    No More Space Race for US, Rivalry Gives Way to Collaboration

    What began as a struggle for dominance in space between two world powers has changed entirely to one of joint efforts

    Beijing Warns Critics Over South China Sea Dispute

    Official warns critics that the more they challenge China's position regarding disputed territories in one of world’s busiest waterways, the more it will push back

    Move Over Millennials, Here Comes iGeneration

    How the first generation to be born, almost literally, with a smartphone in hand, might change America

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    British Government to Resettle Unaccompanied Child Refugeesi
    X
    Henry Ridgwell
    May 06, 2016 9:24 PM
    After criticism from lawmakers across the political spectrum, the British government has signaled that it will accept thousands of unaccompanied Syrian child refugees who have fled to Europe. It follows a campaign by a group of former Jewish refugees who were given refuge in Britain from Nazi persecution in the 1930s. VOA's Henry Ridgwell reports.
    Video

    Video British Government to Resettle Unaccompanied Child Refugees

    After criticism from lawmakers across the political spectrum, the British government has signaled that it will accept thousands of unaccompanied Syrian child refugees who have fled to Europe. It follows a campaign by a group of former Jewish refugees who were given refuge in Britain from Nazi persecution in the 1930s. VOA's Henry Ridgwell reports.
    Video

    Video Strangers Share Secrets Through Postcards

    Frank Warren owns a million secrets. Strangers from around the world send him postcards with their confessions, their disappointments, and their hopes for the future, all anonymously. He displays his favorites online and in exhibits, and shares them with audiences in sold-out appearances around the globe. As VOA's Julie Taboh reports, what started as a simple social experiment has evolved into a multi-faceted and hugely successful global phenomenon.
    Video

    Video Largest Ground-based Telescope Under Construction

    While NASA's engineers are nearing the final phase of assembling the new James Webb space telescope, scheduled to be deployed in 2018, an international consortium led by the U.S. is laying foundations and building parts for a ground-based telescope, much larger than any other. VOA's George Putic reports.
    Video

    Video Image Recognition Market Seen Doubling by 2020

    From auto tagging on Facebook to self-driving cars, image recognition technology as it exists today is still in its beginning phases, experts say — and will soon change the way users and corporations interact with the physical world. VOA's Ramon Taylor reports.
    Video

    Video Child Labor in Afghanistan Remains a Problem

    With war still raging in Afghanistan, the country also faces the problem of child labor as families put their school-age children to work to help make ends meet. But, thanks to VOA's Afghan Service, two families whose children had been working in a brick-making factory - to earn their livings and pay off family debts - now have a new lease on life. Zabihullah Ghazi reports.
    Video

    Video Kurdish Troops Recount Firefight Which Killed US Navy SEAL

    A U.S. Navy SEAL killed Tuesday, when Islamic State fighters punched through Kurdish lines in northern Iraq, was part of a quick reaction force sent to extract other U.S. troops trapped by the surprise offensive. VOA's Kawa Omar spoke with Kurdish troops in the town of Telskuf -- the scene of what U.S. officials called a "dynamic firefight."
    Video

    Video British Lawmakers Warn EU Exit Talks Could Last A Decade

    Leaving the European Union would mean difficult negotiations that could take years to complete, according to a bipartisan group of British lawmakers. While the group did not recommend a vote either way, the lawmakers noted trade deals between the EU and non-EU states take between four and nine years on average. Henry Ridgwell reports on the mounting debate over whether Britain should stay or exit the EU as the June vote approaches.
    Video

    Video NASA Astronauts Train for Commercial Space Flights

    Since the last Shuttle flight in 2011, the United States has been relying on Russian rockets to launch fresh crews to the International Space Station. But that may change in the next few years. NASA and several private space companies are developing advanced capsules capable of taking humans into low orbit and beyond. As VOA's George Putic reports, astronauts are already training for commercial spacecraft in flight simulators.
    Video

    Video US Worried Political Chaos in Iraq Will Hurt IS Fight

    The White House is expressing concern about rising political chaos in Iraq and the impact it could have on the fight against the Islamic State. The U.S. says Iraq needs a stable, central government to help push back the group. But some say Baghdad may not have a unified government any time soon. VOA's White House correspondent Mary Alice Salinas reports.
    Video

    Video Press Freedom in Myanmar Fragile, Limited

    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Taliban Threats Force Messi Fan to Leave Afghanistan

    A young Afghan boy, who recently received autographed shirts and a football from his soccer hero Lionel Messi, has fled his country due to safety concerns. He and his family are now taking refuge in neighboring Pakistan. VOA's Ayaz Gul reports from Islamabad.
    Video

    Video Major Rubbish Burning Experiment Captures Destructive Greenhouse Gases

    The world’s first test to capture environmentally harmful carbon dioxide gases from the fumes of burning rubbish took place recently in Oslo, Norway. The successful experiment at the city's main incinerator plant, showcased a method for capturing most of the carbon dioxide. VOA’s Deborah Block has more.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8742
    JPY
    USD
    107.09
    GBP
    USD
    0.6893
    CAD
    USD
    1.2820
    INR
    USD
    66.504

    Rates may not be current.