- ORIGINAL NEWS
Private payroll growth slowed to just 107,000 in January, below expectations, ADP reports
- SUMMARY
Companies in the United States saw a slowdown in hiring in January 2024, with a total of 107,000 jobs added, significantly lower than the revised 158,000 jobs added in December.
Leisure and hospitality led the way with 28,000 new hires, followed by trade, transportation, and utilities with 23,000, and construction with 22,000.
Only information services reported a decline in jobs.
This data comes ahead of the Labor Department’s nonfarm payrolls report, which is expected to show growth in employment.
However, the ADP data can differ from the official government report.
Average annual wage growth remained robust at 5.2%, exceeding the government’s measure of average hourly earnings.
Midsize establishments (50-499 employees) were the main drivers of job creation, adding 61,000 positions, while small businesses had a modest increase of 25,000 jobs.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Companies added 107,000 workers in the first month of 2024, off from the downwardly revised 158,000 in December.”
“Leisure and hospitality posted the biggest increase, with an addition of 28,000 workers, while trade, transportation and utilities added 23,000, and construction rose by 22,000.”
Negative
“Private payroll growth declined sharply in January, a possible sign that the U.S. labor market is heading for a slowdown this year, ADP reported Wednesday.”
“Only one sector — information services (-9,000) — reported a decline, but hiring was slow across virtually all sectors.”