ADP Reports Stronger-than-Expected January Payrolls
February 03 2016 - 9:20AM
Dow Jones News
Private-sector hiring was better-than-expected in January, the
latest indication that the U.S. labor market remains solid even as
some pockets of the economy show signs of cooling.
Private payrolls in the U.S. increased by 205,000 last month,
said payroll processor Automatic Data Processing Inc. and
forecasting firm Moody's Analytics. The report is based on data
collected from ADP clients in addition to lagged government
data.
Economists surveyed by The Wall Street Journal expected an
increase of 190,000. The December increase was revised higher by
10,000 to 267,000.
"Job growth remains strong despite the turmoil in the global
economy and financial markets," said Mark Zandi, chief economist of
Moody's Analytics.
Monthly gains in private payrolls continues to be powered by the
service sector, which represents most of the economy's jobs and has
been offsetting a manufacturing sector beset by a stronger dollar
and sharply lower energy prices. Service-providing firms added
192,000 workers in January, though hiring eased from an upwardly
revised 237,000 in December.
While private companies continued to hire at a solid clip last
month, a pullback in hiring at big firms was behind the
deceleration in overall payroll growth from December. Companies
with 500 or more employees hired 44,000 workers last month, halved
from December. "These businesses are more sensitive to current
economic conditions than small and mid-sized companies," said Ahu
Yildirmaz, head of the ADP Research Institute.
Medium-size businesses hired 82,000 workers, up from 77,000 a
month earlier, while small companies added 79,000, down from an
upwardly revised 101,000 at the end of the year.
The ADP report comes ahead of the Bureau of Labor Statistics's
employment-situation report, due out Friday morning. ADP lags
behind the government's initial private payroll estimate by a
month. In December, the initially reported ADP figure fell 35,000
short of the government's number; in November, ADP came in 6,000
higher than the BLS number after falling short by 87,000 in
October.
Economists polled by The Wall Street Journal expect the BLS to
report an increase of 186,000 in January nonfarm payrolls, down
from a much stronger-than-expected 292,000 a month earlier.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
February 03, 2016 09:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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