U.S. Private Sector Job Growth Exceeds Estimates In January

Private sector employment in the U.S. increased by much more than anticipated in the month of January, according to a report released by payroll processor ADP on Wednesday.

ADP said employment in the private sector spiked by 234,000 jobs in January after surging up by a revised 242,000 jobs in December.

Economists had expected an increase of about 185,000 jobs compared to the jump of 250,000 jobs originally reported for the previous month.

“We’ve kicked off the year with another month of unyielding job gains,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

“Service providers were firing on all cylinders, posting their strongest gain in more than a year,” she added. “We also saw robust hiring from midsize and large companies.”

The report said employment in the service-providing sector shot up by 212,000 jobs, while the goods-producing sector added 22,000 jobs.

ADP said small businesses added 58,000 jobs, and employment at large and medium businesses climbed by 85,000 jobs and 91,000 jobs, respectively.

On Friday, the Labor Department is scheduled to release its monthly employment report for January, which includes both public and private sector jobs.

Employment is expected to increase by 175,000 jobs in January after climbing by 148,000 jobs in December. The unemployment rate is expected to hold at 4.1 percent.

The material has been provided by InstaForex Company – www.instaforex.com