According to the most recent ADP National Employment report, the private sector added 213,000 jobs in January. This is an impressive number that far surpasses the 178,000 job additions Wall Street had expected; and it is more impressive, of course, as it happened in the middle of a five-week government shutdown that experts thought would have a massive negative toll on small businesses in the country.
As a matter of fact, Moody’s chief economist Mark Zandi explains, “The job market weathered the government shutdown well. Despite the severe disruptions, businesses continued to add aggressively to their payrolls. As long as businesses hire strongly the economic expansion will continue on.”
Looking more closely at the numbers, the services sector added the more jobs than any other sector, adding 145,000. Within this sector, professional and business services grew by upwards of 46,000 new payrolls with education and health services payrolls grew by 38,000. In addition, the goods producing sector (which includes industries in mining, manufacturing, and construction) grew by 68,000 payrolls.
Still, ADP Research Institute vice president and co-head Ahu Yildirmaz comments that the labor market continues a pattern of strong growth. There is “little sign of a slowdown in sight,” he says, adding that they saw “significant growth in nearly all industries.”
Breaking the numbers down, medium-sized businesses (business which employ between 50 and 499 people) saw the most advancement. These businesses added 84,000 payrolls. Large businesses (obviously those with 500 or more employees) saw the next largest increase, of 66,000. Small businesses (those with fewer than 50 employees) saw the smallest increase, which is still an impressive 63,000 new payrolls.
At the end of this week, the United States Department of Labor will release its jobs report for January. The first report of the year is always hotly-anticipated as it will provide a deep look at the current state of the labor market. This observation will include data on things like job auditions, unemployment, wage growth, and the overall labor participation rate.
In the upcoming report, analysts expect the data will align with expectations to add 166,000 jobs, which is only about half of the unexpectedly high 321,000 jobs added in December.