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ADP Survey: US Companies Added Healthy 234,000 Jobs in January

ADP Survey: US Companies Added Healthy 234,000 Jobs in January
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Wednesday, 31 January 2018 09:02 AM

U.S. businesses continued to hire at a healthy pace in January, a sign the economy is off to a solid start for the year.

Payroll processor ADP said Wednesday that companies added 234,000 jobs, led by big gains in services firms, such as hotels, restaurants, retail, education and health.

Job gains at that pace are easily enough to drive down the already-low unemployment rate over time. The rate has remained at 4.1 percent for the past three months. Businesses are optimistic about the economy, particularly after the President Donald Trump's tax overhaul was approved last month, the Associated Press reported.

Still, ADP's data and government figures frequently diverge. In December, ADP's report showed employers added 242,000 jobs. But government data indicated just 148,000 jobs were added.

Highlights of ADP Employment (January)

Private payrolls increased by 234k (185k est.) after a revised 242k increase in Dec. Payrolls in goods-producing industries, which include builders and manufacturers, rose 22k; factory employment increased 12k Service providers added 212k workers to payrolls, the most since Nov. 2016

The data show a continuing trend of robust hiring as companies remain desperate for skilled and experienced workers, Bloomberg reported. While steady job gains have yet to filter through into bigger wage growth, companies including Apple Inc., FedEx Corp., and Wal-Mart Stores Inc. offered bonuses in the wake of a Republican tax bill signed by Trump late last year.

The January ADP figure compares with the Bloomberg survey median for a 181,000 increase in private payrolls, when the government issues its monthly jobs report on Friday.

Economists’ View

“The job market juggernaut marches on,” Mark Zandi, chief economist of Moody’s Analytics Inc. in West Chester, Pennsylvania, said in the statement. Moody’s produces the figures with ADP. “Given the strong January job gain, 2018 is on track to be the eighth consecutive year in which the economy creates over 2 million jobs. If it falls short, it is likely because businesses can’t find workers to fill all the open job positions.”

Other Details

  • Construction payrolls increased 9,000
  • Professional and business services added 46,000 workers, and leisure and hospitality also took on 46,000 employees
  • Payrolls in trade, such as retailers, transportation and utilities, increased 51,000 in January, while health care companies took on 41,000 workers
  • Large firms, those employing 500 or more workers, increased staffing by 85,000 jobs; payrolls rose by 91,000 at medium-sized businesses, or those with 50 to 499 employees; and small companies added 58,000 jobs

(Newsmax wire services contributed to this report).

© Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

   
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Economy
U.S. businesses continued to hire at a healthy pace in January, a sign the economy is off to a solid start for the year.
adp, survey, us, companies, jobs
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2018-02-31
Wednesday, 31 January 2018 09:02 AM
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