Everyday Power- Companies added more positions than expected. Are they good signals?

According to a Wednesday count from payroll processing firm ADP, private job creation rose faster than expected in February.

For the month, companies added 475,000 jobs, above the Dow Jones forecast of 400,000.

The leisure and hospitality industry led the way with a gain of 170,000 jobs; professional and business services added 72,000, while trade, transportation, and utilities added 98,000 jobs. Manufacturing gained 30,000, while construction gained 26,000 jobs.

Would more jobs created bring positive sentiment to markets? An increasing number of jobs is likely to mean a lower unemployment rate, reflecting a trend of economic recovery and bringing positive effects to markets.

In contrast, a higher unemployment rate reflects a depressed economic situation and is likely to bring negative anticipation.

[Everyday Power]

1. The unemployment rate is the percentage of the labor force that is jobless.

2. It's a lagging indicator. Its rise or fall is based on economic changes rather anticipating them.

3. When the economy is healthy, jobs will increase, and vice versa.

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