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• Private payrolls climbed by 475,000 jobs last month
• The service sector added 417,00 jobs while Goods-producing added 57,000
U.S. private companies added employment as the economy rebounds from Omicron covid variant.
According to the ADP National Employment Report released on Wednesday, private payrolls rose by 475,000 last month, well above the forecast of 400,000 by the Dow Jones economists. The January total was revised from a plunge of 301,000 to a gain of 509,000.
The ADP data was created in collaboration with Moody's Analytics and was released ahead of the Labor Department's jobless claim report, which is due out on Thursday at 8:30 am E.T.
"Hiring remains robust but capped by reduced labor supply post-pandemic. Last month large companies showed they are well-poised to compete with higher wages and benefit offerings and posted the strongest reading since the early days of the pandemic recovery," said Nela Richardson, chief economist, ADP.
The Large businesses with 500 or more employees added 552,000 during the month. Medium-sized businesses with 50 to 499 employees recruited 18,000 people, while businesses with less than 50 workers reported a loss of 96,000.
The sector, which includes Natural resources/mining, construction, and manufacturing, created 57,000 jobs.
The Leisure/hospitality industry created 170,000 jobs; the information sector increased by 8,000 while financial activities jobs climbed by 11,000 in total 417,000 jobs added in the service sector.
Read more: US GDP grew at 6.9% annually in Q4 2021
Professional and business services increased by 72,000. Trade, transportation, and utilities increased by 98,000, and education and health services increased by 40,000.
"Small companies lost ground as they continue to struggle to keep pace with the wages and benefits needed to attract a limited pool of qualified workers," Richardson said.
Picture Credits: FT