ADP Jobs

Private Sector Employment Increased by 291,000 Jobs in January

Private sector employment increased by 291,000 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 the ADP Research Institute® 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.

Total U.S. Nonfarm Private Employment:     291,000

By Company Size

– Small businesses:     94,000

  • 1-19 employees     26,000
  • 20-49 employees     68,000

– Medium businesses:     128,000

  • 50-499 employees     128,000

– Large businesses:     69,000

  • 500-999 employees     27,000
  • 1,000+ employees     42,000

By Sector

– Goods-producing:     54,000

  • Natural resources/mining     -2,000
  • Construction     47,000
  • Manufacturing     10,000

– Service-providing:     237,000

  • Trade/transportation/utilities     8,000
  • Information     2,000
  • Financial activities     2,000
  • Professional/business services     49,000
         – Professional/technical services     29,000
         – Management of companies/enterprises     6,000
         – Administrative/support services     14,000
  • Education/health services     70,000
         – Health care/social assistance     47,000
         – Education     24,000
  • Leisure/hospitality     96,000
  • Other services     10,000

* Sum of components may not equal total, due to rounding.

– Franchise Employment

  • Franchise jobs     45,100

“The labor market experienced expanded payrolls in January,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Goods producers added jobs, particularly in construction and manufacturing, while service providers experienced a large gain, led by leisure and hospitality. Job creation was strong among midsized companies, though small companies enjoyed the strongest performance in the last 18 months.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Mild winter weather provided a significant boost to the January employment gain. The leisure and hospitality and construction industries in particular experienced an outsized increase in jobs. Abstracting from the vagaries of the data underlying job growth is close to 125,000 per month, which is consistent with low and stable unemployment.”

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.  The December total of jobs added was revised down from 202,000 to 199,000.

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