ADP: Private sector grew by 175,000 jobs in January

ADP National Employment Report
February 5, 2014
Filed under News

ROSELAND, N.J. – Private sector employment increased by 175,000 jobs from December to January according to the January ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by ADP®, a leading global provider of Human Capital Management (HCM) solutions, in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

ADP Highlights 02/05/2014Goods-producing employment rose by 16,000 jobs in January, down from a downwardly-revised figure of 50,000 in December. Nearly all of the growth came from the construction industry which added 25,000 jobs over the month; this followed increases of 30,000 and 32,000 in the prior two months. Manufacturing lost jobs in January; the decline of 12,000 followed a revised gain of 16,000 in the prior month and was the first decline in industry payrolls since July 2013.

Service-providing industries added 160,000 jobs in January, down from an upwardly-revised December figure of 177,000. The ADP National Employment Report indicates that professional/ business services contributed the most to growth in service-providing industries, adding 49,000 jobs. This was well below the average gain of the prior two months of 65,000. Expansion in trade/transportation/utilities slowed to a gain of 30,000 jobs in January. Financial activities employment was flat over the month, following two consecutive months of gains of 6,000 apiece.

“The U.S. private sector added 175,000 jobs in January, which is in line with the average monthly growth throughout 2013,” said Carlos Rodriguez, president and chief executive officer of ADP.

Mark Zandi, chief economist of Moody’s Analytics, said, “Cold and stormy winter weather continued to weigh on the job numbers. Underlying job growth, abstracting from the weather, remains sturdy. Gains are broad based across industries and company sizes, the biggest exception being manufacturing, which shed jobs, but that is not expected to continue.”

Payroll growth for businesses with 49 or fewer employees decelerated in January, adding 75,000 jobs. This is the slowest pace of small business job growth since August 2013. Employment levels among medium-sized companies with 50-499 employees rose by 66,000 and employment at large companies – those with 500 or more employees – increased by 34,000. While this represented an acceleration in job growth for mid-size firms, growth at large firms was nearly half of what it was in December.

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S.

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