New York, NY, United States (4E) – Companies hired more workers than estimated in January, an indication that expansion in the U.S. labor market is keeping its momentum at the start of the year, according to a private report by a payroll processor.
Payroll service firm ADP said on Wednesday that 192,000 jobs were added by private employers in January, while it revised down its estimate for December from 215,000 to 185,000 private jobs.
Despite the political battle among Washington politicians over fiscal issues, growing payrolls suggest that U.S. businesses see strong enough demand in the future to hire new workers. A survey of economists by Bloomberg show median average of 168,000 jobs will be added last month that will be reflected in the Labor Department’s report on Feb. 1, holding the unemployment rate at 7.8 per cent.
Large companies employing 500 or more workers saw payrolls dropped by 2,000 in January, while medium-sized businesses with 50 to 499 employees increased their payrolls by 79,000. Small companies boosted payrolls by 115,000, according to ADP.
The ADP report also showed that industries producing goods like manufacturers and construction firms added 15,000 net jobs as factory employment fell by 3,000 while construction employment gained 15,000.
Wall Street analysts use ADP’s data as guidance on the Labor Department’s non-farm payroll figure in its January unemployment report, which is scheduled to be released Friday.
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