Companies in the private sector added 63,000 jobs in January, payroll processing firm ADP said Wednesday.
The figure is well below economists’ estimates of a gain of 50,000 jobs. The prior month’s payrolls number was revised lower to a gain of just 11,000 from an initially reported gain of 22,000.
“We’ve seen an increase in hiring and pay gains remain solid, especially for job-stayers,” said Nela Richardson, ADP chief economist. “But with hiring concentrated in only a few sectors, our data shows no widespread pay benefit from changing jobs. In fact, the pay premium for switching employers hit a record low in February.”
Education and health services added 58,000 positions, leading job creation in February. Construction added 19,000, information gained 11,000 and other services added 6,000.
Financial activities added 2,000 jobs, natural resources and mining gained 2,000 and leisure and hospitality added 1,000 positions.
On the negative side, professional and business services lost 30,000 jobs. Manufacturing lost 5,000 positions and trade, transportation and utilities lost 1,000.
This is a developing story. Please check back for updates.
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