Private-sector job growth cooled to 213,000 in January, ADP says

The pace of hiring by private-sector firms cooled in January to 213,000, ADP said

Private-sector hiring cooled last month, with employers adding a still-solid 213,000 net new jobs, payroll firm Automatic Data Processing Inc. said Wednesday.

The figure, a closely watched indicator of the labor market, was down from an upwardly revised 253,000 the previous month. ADP initially estimated December's job gains at 241,000.

Economists had forecast that the ADP report would show the private sector added 220,000 net new jobs in January.

“Employment posted another solid gain in January, although the pace of growth is slower than in recent months,” said Mark Zandi, chief economist of Moody's Analytics, which assists ADP in preparing the report.

Falling oil prices have affected job growth as energy-related businesses scaled back their workforces “while industries benefiting from the lower prices have been slower to increase their hiring,” Zandi said.

Still, he said, he expected the job market to continue to improve this year.

The ADP data come ahead of Friday's Labor Department report on overall job growth in the private and public sectors.

Economists project that the government report will show that the U.S. economy added 230,000 net new jobs in January and that the unemployment rate held steady at 5.6%. Such a gain in new jobs would be a drop-off from December, when the economy added 252,000 net new jobs, but still would be considered healthy growth.

For its survey, ADP said goods-producing businesses added 31,000 net new jobs in January, down from 47,000 the previous month.

The pace of hiring in the service sector also dropped last month, it said. Those firms added 183,000 net new jobs compared with 207,000 in December.

 

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Private-sector hiring cooled last month, with employers adding a still-solid 213,000 net new jobs, payroll firm Automatic Data Processing Inc. said Wednesday.
The figure, a closely watched indicator of the labor market, was down from an upwardly revised 253,000 the previous month. ADP initially estimated December's job gains at 241,000.
Economists had forecast that the ADP report would show the private sector added 220,000 net new jobs in January.
“Employment posted another solid gain in January, although the pace of growth is slower than in recent months,” said Mark Zandi, chief economist of Moody's Analytics, which assists ADP in preparing the report.
Falling oil prices have affected job growth as energy-related businesses scaled back their workforces “while industries benefiting from the lower prices have been slower to increase their hiring,” Zandi said.
Still, he said, he expected the job market to continue to improve this year.
The ADP data come ahead of Friday's Labor Department report on overall job growth in the private and public sectors.
Economists project that the government report will show that the U.S. economy added 230,000 net new jobs in January and that the unemployment rate held steady at 5.6%. Such a gain in new jobs would be a drop-off from December, when the economy added 252,000 net new jobs, but still would be considered healthy growth.
For its survey, ADP said goods-producing businesses added 31,000 net new jobs in January, down from 47,000 the previous month.
The pace of hiring in the service sector also dropped last month, it said. Those firms added 183,000 net new jobs compared with 207,000 in December.

 

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