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ADP Jobs Report: Private Payrolls Added 246,000 Jobs in January

Topics: Current Events

The private sector added 246,000 jobs last month, according to payrolls processor ADP. That far exceeded economists’ estimates, which ranged from 140,000 to 200,000 jobs, according to Reuters.

ADP jobs report
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“2017 got off to a strong start in the job market,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Job growth is solid across most industries and company sizes. Even the energy sector is adding to payrolls again.”

“Further analysis shows that services gains have rebounded from their tepid December pace, adding 201,000 jobs,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “The goods producers added 46,000 jobs, which is the strongest job growth that sector has seen in the last two years.”

Where Jobs Grew

The goods-producing sector added 46,000 jobs last month, with gains in mining (+6,000 jobs), construction (+25,000 jobs), and manufacturing (+15,000 jobs).

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The service-providing sector added 201,000 jobs. The following industries grew last month: trade/transportation/utilities (+63,000 jobs), professional/business services (+71,000 jobs), healthcare (+49,000 jobs), and leisure hospitality (+17,000 jobs). Information shed 6,000 jobs, while education lost 2,000 jobs. The financial industry was flat for the month.

Growth was fairly evenly distributed across company sizes. Small employers with fewer than 50 workers added 62,000 jobs. Medium-sized employers with between 50 and 499 workers added 102,000 jobs. Large employers with 500 or more workers added 83,000 jobs.

Looking Ahead to the Employment Situation Summary

Friday’s report from the Labor Department is expected to reflect the addition of 175,000 jobs to public and private, non-farm payrolls, according to economists polled by Reuters. The report will also show the latest unemployment rate, which is expected to stay steady at 4.7 percent, and wage growth. The PayScale Index, which measures the change in wages for employed U.S. workers, forecasts 3.2 percent year-over-year growth for the first quarter of 2017.

 ADP National Employment Report: Private Sector Employment Increased by 246,000 Jobs in January

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Jen Hubley Luckwaldt
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