An independent measure of U.S. employment showed Wednesday that the pace of hiring by private sector employers slowed in January.
Payroll firm ADP said its metrics showed the number of monthly payrolls at U.S. companies rose by 107,000 in the first month of 2024, slowing from a downwardly revised 158,000 in December.
The December figure was revised downward from 164,000.
Economists compiled by Econoday had predicted 145,000 people in January.
ADP payroll estimates no longer attempt to predict the Department of Labor’s official nonfarm payroll numbers. Rather, it is intended to be an independent measure of the labor market.
The government will release preliminary employment figures for January on Friday. Economists expect nonfarm payrolls to rise by 170,000, lower than the 216,000 announced in December. Private sector employment is expected to increase by 142,000 people, down from December’s 164,000.
Some economists focus on ADP as a general indicator of the long-term direction of employment. Therefore, if ADP numbers are consistently decreasing or increasing, the official numbers are likely to follow a similar path.
According to the ADP report, the leisure and services industry had the biggest job growth in January, followed by transportation, construction, and health and human services. According to ADP, the information sector is shedding jobs.
