The private sector added some 205,000 jobs in January’s ADP report.
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Sustained hiring is a sign companies are optimistic that demand will improve after a fourth-quarter growth slowdown.
The data for this report is collected for pay periods that can be interpolated to include the week of the 12th of each month, and processed with statistical methodologies similar to those used by the U.S. Bureau of Labor Statistics to compute employment from its monthly survey of establishments.
Asked to comment on the ADP data during an interview on CNBC, Goldman Sach’s CEO Lloyd Blankfein replied: “I think things are much better than the prevailing sentiment would indicate”. “Manufacturers and energy companies area reducing payrolls, but job gains across all other industries remain robust”.
Any gain above 200,000 will be considered to be very good and Dollar might gain momentum because it will not only beat estimates but would show market turmoil had no effect on payroll gains. Total non-farm employment is expected to increase by 190,000 versus 292,000 in December, and the unemployment rate is expected to remain at 5 percent. The goods-producing sector added only 13,000 jobs. Hiring at factories was unchanged, while construction companies added 21,000 jobs.
The U.S. economy saw a decline in the number of jobs added for January, but still saw one of the best months for employment in the previous year.
Payrolls for businesses with 49 or fewer employees increased by 79,000 jobs in January, down from December’s upwardly revised 101,000.
The ADP figures are based on data from businesses with nearly 24 million workers on their combined payrolls.
ADP’s jobs figures are released ahead of Friday’s Department of Labor employment report.
Private businesses may have added 180,000 workers after rising 275,000 the month before, the survey projections also show.
Strong job growth again came from service providers, who were responsible for 192,000 of the total, with financial firms adding a net 19,000 workers for the biggest gain since March 2006. These businesses are more sensitive to current economic conditions than small and mid-sized companies.
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Despite the weakness in those two sectors, Zandi said the US economy remains on track to reach full employment by the summer.
