US firms added most workers in 7 months in January, says ADP
Companies likely to continue adding workers at a steady pace, especially following a jump in business optimism
US companies last month added the most workers to payrolls since June on pickups in services and manufacturing jobs, data from the ADP Research Institute in Roseland, New Jersey, showed Wednesday.
Private payrolls climbed by 246,000 (forecast was 168,000) after a revised 151,000 gain in December. Goods-producing industries, which include manufacturers and builders, increased headcounts by 46,000, the most in two years, after a rise of 4,000. Service providers boosted payrolls by 201,000 following a 147,000 gain.
With demand rising throughout the economy, companies are likely to continue adding workers at a steady pace, especially following a jump in business optimism on the heels of US President Donald Trump’s election victory. Hiring occurred across all business sizes and most industries, figures that could provide insight on the labour market ahead of Friday’s release of the government’s monthly payrolls report, which is projected to show a 170,000 increase in private jobs.
“2017 got off to a strong start in the job market,” Mark Zandi, chief economist at Moody’s Analytics in West Chester, Pennsylvania, said in a statement. Moody’s produces the figures with ADP. “Job growth is solid across most industries and company sizes. Even the energy sector is adding to payrolls again.”
Hiring in construction totaled 25,000, the most in four months. Factories added 15,000 workers, the most since December 2014. Companies employing 500 or more workers increased staffing by 83,000 jobs, while payrolls rose by 102,000 at medium-sized businesses, or those with 50 to 499 employees. Small companies’ payrolls gained 62,000 workers, the most since July.