Private sector adds more jobs than expected in January

NEW YORK Wed Jan 30, 2013 9:07am EST

1 of 2. Job seekers listen to a social media expert during a job fair in New York, January 10, 2013. Private-sector employers added 192,000 jobs in January, more than economists were expecting, in a sign of growth in the labor market, a report by a payrolls processor showed on Wednesday.

Credit: Reuters/Lucas Jackson

NEW YORK (Reuters) - Private-sector employers added 192,000 jobs in January, more than economists were expecting, in a sign of growth in the labor market, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 165,000 jobs. December's private payrolls were revised down to an increase of 185,000 from the previously reported 215,000.

The report is jointly developed with Moody's Analytics.

Small businesses with less than 50 employees did the most hiring this month, adding 115,000 jobs. But large businesses of more than 500 workers cut 2,000 jobs.

"The job market is slowly, but steadily, improving," Mark Zandi, chief economist of Moody's Analytics, said in a statement.

By industry, professional and business services firms led gains with 40,000 jobs, while the manufacturing sector fared the worst, cutting 3,000 positions.

U.S. stock index futures showed little reaction to the ADP report, though futures extended declines later in the morning following data that showed the economy unexpectedly contracted in the fourth quarter.

The ADP figures come ahead of the government's much more comprehensive labor market report on Friday, which includes both public and private sector employment.

"The data suggests that jobs growth is accelerating and bodes well for Friday's payrolls report," said Omer Esiner, analyst at Commonwealth Foreign Exchange in Washington.

The government release is expected to show hiring held steady in January with 160,000 jobs created.

Economists often refer to the ADP report to fine-tune their expectations for the payrolls numbers, though it is not always accurate in predicting the outcome.

(Reporting by Leah Schnurr, additional reporting by Nick Olivari; Editing by Chizu Nomiyama)

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Comments (5)
byrond2 wrote:
I’m sure that there was no net gain of jobs, it’s all seasonal adjustments. It’s also amusing how they know how many jobs were added this month before the month is over. Statistics and conjecture.

Jan 30, 2013 8:39am EST  --  Report as abuse
AZreb wrote:
In February can we look for a drop of 30,000 as we see in the drop of December’s number? That would mean only 162,000 jobs added in January.

Jan 30, 2013 8:42am EST  --  Report as abuse
bobber1956 wrote:
The economy shrank the last quarter of 2012 by .1%. End of story for now-more to come.

“The U.S. economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.

The Commerce Department says the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That’s a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.”

http://www.foxnews.com/us/2013/01/30/us-economy-shrinks-01-pct-first-time-in-3-years-deep-cut-in-defense-spending/#ixzz2JT9wOAIa

Jan 30, 2013 9:32am EST  --  Report as abuse
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