Friday, 16 April, 2021

USA private sector employment rises by 174K in January vs. 49K expected

Job seekers line up at a job fair of an oil services giant Halliburton at the MCM Grande Fundome hotel in Odessa Texas Breaking: US private sector employment rises by 174K in January vs. 49K expected
Ginger Lawrence | 04 February, 2021, 10:22

Small businesses, with a maximum of 49 employees, registered 51,000 payroll gains and large businesses, those of at least 500 workers, created 39,000 jobs. Economists expect an increase of 50,000 jobs. Almost half of the growth was seen among medium-sized businesses with between 50 and 500 employees, it said.

Job growth should be supported in coming months by nearly $900bn of extra government crisis relief approved in late December and President Biden's proposed $1.9 trn recovery plan.

The job losses were concentrated heavily in services-related businesses, which accounted for 156,000 of the total gain.

The services sector bounced back as the leisure and hospitality industry that had earlier been hard hit by the lockdowns added 35,000 jobs. Franchise jobs increased by 10,700. However, millions of businesses have closed over the past year due to the pandemic, leaving many of their former employees out of work.

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"The labor market continues its slow recovery amid COVID-19 headwinds", Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement.

The nonfarm private sector in the US resumed its job-creation trend in January after companies shed workers in December amid a wave of business restrictions to contain Covid-19, data from ADP National Employment Report showed Wednesday. "Job growth has come to a virtual standstill". "It hasn't improved much at all since late previous year, since October, and I don't think we'll see any improvement in the month of January", he added.

The Labor Department will issue its January jobs report, the official assessment, on Friday.