The ADP National Employment Report announced on March 8 that U.S. companies in the private sector created 298,000 new jobs, far out-performing even the most modest of economic projections.
A survey of economists shows that experts predicted 189,000 new jobs would be added to the market in February, according to CNBC. The ADP report has beat even the most modest of expectations. Experts now believe the surge in job growth will prompt the Federal Reserve to increase interest rates by mid-March.
"February proved to be an incredibly strong month for employment with increases we have not seen in years," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, in a statement.
Service jobs are responsible for the bulk of the new jobs with the creation of 193,000 new positions, 66,000 of which are in professional and business services. Goods producers have created 106,000 new positions. Health care added 38,000 new jobs and information-related services created 25,000 new positions.
The report encompasses the entirety of President Donald Trump's first full month in office. Trump has committed to rebuilding the country's infrastructure system and the mining industry. The ADP report states that mining and natural resources added 8,000 new jobs in February. The construction industry added 60,000 jobs and manufacturing added 32,000.
"Confidence is playing a large role," said Moody's Analytics' chief economist Mark Zandi. Moody's worked with ADP to produce the report. "Businesses are anticipating a lot of good stuff -- tax cuts, less regulation. They are hiring more aggressively."
Zandi also suggests the job market also received a boost from the unseasonably warm winter weather this year.
Trump took to Twitter to announce the surge in job growth: "U.S. private sector job creation surging with nearly 300k created last month. Much more than expected!"
Reuters reports that Trump intends to boost the country's economic growth to 4 percent. But, a separate report by the U.S. Labor Department suggests worker productivity is on the decline, which could impede real growth. The country has not achieved even 3 percent annual growth since the economic recession ended in 2009.
Nonetheless, the surge in job growth should bring down the country's unemployment rate from 4.8 to 4.7 percent, according to the Daily Mail.
A new and more comprehensive report on employment is expected to be released by the federal government March 10. It will provide a broader view of the overall number of jobs than the ADP report.