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

US Imposes Sanctions on Alleged Honduran Drug Gang

Treasury department alleges Los Valles group is responsible for smuggling tens of thousands of kilograms of cocaine into US each month More

At 91, Marvel Creator Stan Lee Continues to Expand his Universe

Company's chief emeritus hopes to interest new generation of children in superheroes of all shapes and sizes by publishing content across multiple media platforms More

Photogallery New Drug Protects Against Virus in Ebola Family

Study by researchers at University of Texas Medical Branch, Tekmira Pharmaceuticals is first looking at drug's effectiveness after onset of symptoms More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
African Media Tries to Educate Public About Ebolai
X
George Putic
August 20, 2014 8:57 PM
While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video Ferguson Calls For Justice as Anger, Violence Grips Community

Violence, anger and frustration continue to grip the small St. Louis suburb of Ferguson, Missouri. Protests broke out after a white police officer fatally shot an unarmed black teenager on August 9. The case has sparked outrage around the nation and prompted the White House to send U.S. Attorney Eric Holder to the small community of just over 20,000 people. VOA’s Mary Alice Salinas has more from Ferguson.
Video

Video Beheading Of US Journalist Breeds Outrage

U.S. and British authorities have launched an investigation into an Islamic State video showing the beheading of kidnapped American journalist James Foley by a militant with a British accent. The extremist group, which posted the video on the Internet Tuesday, said the murder was revenge for U.S. airstrikes on militant positions in Iraq - and has threatened to execute another American journalist it is holding. Henry Ridgwell has more from London.
Video

Video Family Robots - The Next Big Thing?

Robots that can help us with daily chores like cooking and cleaning are a long way off, but automatons that serve as family companions may be much closer. Researchers in the United States, France, Japan and other countries are racing to build robots that can entertain and perform some simpler tasks for us. VOA’s George Putic reports.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.

AppleAndroid

World Currencies

EUR
USD
0.7492
JPY
USD
102.27
GBP
USD
0.5960
CAD
USD
1.0950
INR
USD
61.300

Rates may not be current.