US private sector adds 106,000 jobs in January, far fewer than expected
The website The US private sector added 106,000 jobs in Januaryaccording to the ADP report. It is… the lowest figure since January 2021 and is also well below the consensus forecast of 190,000. This figure is also lower than the 253,000 jobs of the previous month.
The company attributes this data to the fact that extreme weather events have affected job prospects.. “In January, we saw the impact of weather-related disruptions on employment in our reference week. Hiring was stronger in the other weeks of the month, consistent with the strength seen at the end of last year,” explained Nela Richardson, chief economist at ADP.
The hospitality industry is responsible for most of this growth, with bars, restaurants and hotels creating 95,000 jobs. For the rest, financial industries (30,000), manufacturing industry (23,000) and education and health services (12,000) added jobs.
On the other hand, job losses were recorded in trade, transport and public services (-41,000), construction (-24,000) and natural resources and mining (-3 000).
Analysts at Pantheon Macroeconomics expect job growth to slow to 100,000 or less by the end of the quarter and near zero in the second quarter.
On another side, wages increased by 7.3%. compared to January 2022. For those who changed jobs, wage growth accelerated to 15.4%.