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.
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

Isolation, Despair Weigh on Refugees in Remote German Camp

Refugees resettled near village of Holzdorf deep in German forestland say there is limited interaction with public, mutual feelings of distrust

Britons Divided Over Bombing IS

Surveys show Europeans generally support more military action against Islamic State militants, but sizable opposition exists in Britain

Russia Blacklists Soros Foundations as 'Undesirable'

Russian officials add Soros groups to a list of foreign and international organizations banned from giving grants to Russian partners

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
With HIV, Can We Get to Zero?i
Carol Pearson
November 29, 2015 1:23 PM
The theme of this year's World AIDS Day is "Getting to Zero." The U.N. says new HIV infections have been reduced by 35 percent since 2000 and AIDS-related deaths are down by 42 percent since the peak in 2004. VOA's Carol Pearson takes a look at what it might take to actually have an AIDS-free generation.

Video With HIV, Can We Get to Zero?

The theme of this year's World AIDS Day is "Getting to Zero." The U.N. says new HIV infections have been reduced by 35 percent since 2000 and AIDS-related deaths are down by 42 percent since the peak in 2004. VOA's Carol Pearson takes a look at what it might take to actually have an AIDS-free generation.

Video Political Motives Seen Behind Cancelled Cambodian Water Festival

For the fourth time in the five years since more than 350 people were killed in a stampede at Cambodia’s annual water festival, authorities canceled the event this year. Officials blamed environmental reasons as the cause, but many see it as fallout from rising political tensions with a fresh wave of ruling party intimidation against the opposition. David Boyle reports from Phnom Penh.

Video African Circus Gives At-Risk Youth a 2nd Chance

Ethiopia hosted the first African Circus Arts Festival this past weekend with performers from seven different African countries. Most of the performers are youngsters coming form challenging backgrounds who say the circus gave them a second chance.

Video US Lawmakers Brace for End-of-Year Battles

U.S. lawmakers are returning to Washington for Congress’ final working weeks of the year. And, as VOA's Michael Bowman reports, a full slate of legislative business awaits them, from keeping the federal government open to resolving a battle with the White House over the admittance of Syrian refugees.

Video Taiwan Looks for Role in South China Sea Dispute

The Taiwanese government is one of several that claims territory in the hotly contested South China Sea, but Taipei has long been sidelined in the dispute, overshadowed by China. Now, as the Philippines challenges Beijing’s claims in an international court at The Hague, Taipei is looking to publicly assert its claims. VOA’s Bill Ide has more from Beijing.

Video After Terrorist Attacks, Support for Refugees Fades

The terrorists who killed and injured almost 500 people around Paris this month are mostly French or Belgian nationals. But at least two apparently took advantage of Europe’s migrant crisis to sneak into the region. The discovery has hardened views about legitimate refugees, including those fleeing the same extremist violence that hit the French capital. Lisa Bryant has this report for VOA from the Paris suburb of Cergy-Pontoise

Video Syrian Refugees in US Express Concern for Those Left Behind

Syrian immigrants in the United States are concerned about the negative tide of public opinion and the politicians who want to block a U.S. plan to accept 10,000 Syrian refugees. Zlatica Hoke reports many Americans are fighting to dispel suspicions linking refugees to terrorists.

Video Thais Send Security Concerns Down the River

As Thailand takes in the annual Loy Krathong festival, many ponder the country’s future and security. Steve Sandford reports from Chiang Mai.

Video Islamic State Unfazed by Losses in Iraq, Syria

Progress in the U.S.-led effort to beat Islamic State on its home turf in Iraq and Syria has led some to speculate the terror group may be growing desperate. But counterterror officials say that is not the case, and warn the recent spate of terror attacks is merely part of the group’s evolution. VOA National Security correspondent Jeff Seldin has more.

Video Belgium-Germany Border Remains Porous, Even As Manhunt For Paris Attacker Continues

One of the suspected gunmen in the Nov. 13 Paris attacks, Salah Abdeslam, evaded law enforcement, made his way to Belgium, and is now believed to have fled to Germany. VOA correspondent Ayesha Tanzeem makes the journey across the border from Belgium into Germany to see how porous the borders really are.

Video US, Cambodian Navies Pair Up in Gulf of Thailand

The U.S. Navy has deployed one of its newest and most advanced ships to Cambodia to conduct joint training drills in the Gulf of Thailand. Riding hull-to-hull with Cambodian ships, the seamen of the USS Fort Worth are executing joint-training drills that will help build relations in Southeast Asia. David Boyle reports for VOA from Preah Sihanouk province.

Video Uncertain Future for Syrian Refugee Resettlement in Illinois

For the trickle of Syrian refugees finding new homes in the Midwest city of Chicago, the call to end resettlement in many U.S. states is adding another dimension to their long journey fleeing war. Organizations working to help them integrate say the backlash since the Paris attacks is both harming and helping their efforts to provide refugees sanctuary. VOA's Kane Farabaugh reports.

VOA Blogs

World Currencies


Rates may not be current.