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Private Sector Employment Up 291K Jobs - Tops Forecasts

February 5, 2020

Private sector employment increased by 291,000 jobs from December to January according to the January ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody's Analytics. The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

Wall Street was only expecting 150,000 jobs. The jobless rate is now at its lowest point in more than 50 years.

Total U.S. Nonfarm Private Employment:     291,000

By Company Size

- Small businesses:     94,000

  • 1-19 employees     26,000
  • 20-49 employees     68,000

- Medium businesses:     128,000

  • 50-499 employees     128,000

- Large businesses:     69,000

  • 500-999 employees     27,000
  • 1,000+ employees     42,000

By Sector

- Goods-producing:     54,000

  • Natural resources/mining     -2,000
  • Construction     47,000
  • Manufacturing     10,000

- Service-providing:     237,000

  • Trade/transportation/utilities     8,000
  • Information     2,000
  • Financial activities     2,000
  • Professional/business services     49,000
         - Professional/technical services     29,000
         - Management of companies/enterprises     6,000
         - Administrative/support services     14,000
  • Education/health services     70,000
         - Health care/social assistance     47,000
         - Education     24,000
  • Leisure/hospitality     96,000
  • Other services     10,000

* Sum of components may not equal total, due to rounding.

- Franchise Employment**

  • Franchise jobs     45,100

**Complete details on franchise employment can be found here.

"The labor market experienced expanded payrolls in January," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Goods producers added jobs, particularly in construction and manufacturing, while service providers experienced a large gain, led by leisure and hospitality. Job creation was strong among midsized companies, though small companies enjoyed the strongest performance in the last 18 months."

Mark Zandi, chief economist of Moody's Analytics, said, "Mild winter weather provided a significant boost to the January employment gain. The leisure and hospitality and construction industries in particular experienced an outsized increase in jobs. Abstracting from the vagaries of the data underlying job growth is close to 125,000 per month, which is consistent with low and stable unemployment."

 

 

 

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S.  The December total of jobs added was revised down from 202,000 to 199,000.

The ADP National Employment Report® is a monthly measure of the change in total U.S. nonfarm private employment derived from actual, anonymous payroll data of client companies served by ADP®, a leading provider of human capital management solutions.  The report, which measures nearly 24 million U.S. workers, is produced by the ADP Research Institute®, a specialized group within the company that provides insights around employment trends and workforce strategy, in collaboration with Moody's Analytics, Inc.

Each month, ADP Research Institute issues the ADP National Employment Report as part of the company's commitment to adding deeper insights into the U.S. labor market and providing businesses, governments and others with a source of credible and valuable information.  The ADP National Employment Report is broadly distributed to the public each month, free of charge.

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.  Due to this processing, this subset is modified to make it indicative of national employment levels; therefore, the resulting employment changes computed for the ADP National Employment Report are not representative of changes in ADP's total base of U.S. business clients.

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