Private employers added 213,000 jobs last month, according to payroll processor ADP, which produces the monthly ADP National Employment Report with Moody’s Analytics. This was slightly less than predicted by economists, who forecasted gains of 240,000 jobs, according to Reuters.
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“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, in a press release. “Businesses in the energy and supplying industries are already scaling back payrolls in reaction to the collapse in oil prices, while industries benefiting from the lower prices have been slower to increase their hiring. All indications are that the job market will continue to improve in 2015.”
Carlos Rodriguez, president and chief executive officer of ADP, notes that last month’s growth “is in line with the NER’s twelve-month average of over 200,000 jobs added per month.”
Mid-sized businesses with 50 to 499 employees led the growth, adding 95,000 jobs last month, while small business with fewer than 50 employees added 78,000 jobs, and large businesses with 500 employees or more added 40,000 employees.
Trade, transportation, and utilities added 54,000 jobs, an increase from December’s 40,000 jobs, while professional and business services dropped off from last month’s 72,000 jobs, adding 42,000 jobs. Construction and manufacturing were also down from last month: construction added 18,000 jobs, compared to 26,000 jobs in December; manufacturing added 14,000 jobs, compared to 23,000 jobs in December.
Last month’s ADP report was revised upward to 253,000 jobs from 241,000 jobs. Friday’s report from the Labor Department is expected to show an increase of 237,000 jobs, and a slight decrease in the unemployment rate, from 5.6 to 5.5 percent.
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