Private sector employment increased by 107,000 jobs in January, according to the latest ADP National Employment Report. This number is down from the +164,000 jobs reported in December. Annual pay inched down from 5.4% to 5.2% in January.
“Progress on inflation has brightened the economic picture despite a slowdown in hiring and pay,” said Nela Richardson, ADP’s chief economist. “Wages adjusted for inflation have improved over the past six months, and the economy looks like it’s headed toward a soft landing in the U.S. and globally.”
All industries included in the report showed job growth for the month except information, which lost 9,000 jobs. Service-providing industries added 77,000 jobs in January, many of which were in leisure/hospitality (+28,000) and trade/transportation/utilities (+23,000). Goods-producing industries gained 30,000 jobs, with construction adding 22,000.
Job growth by region ranged from +2,000 jobs (West) to +57.000 (South). By establishment size, medium-sized businesses added the most jobs (+61,000), while small businesses added the least (+25,000).
