US private sector adds fewer jobs than expected in January

(Sharecast News) - Private sector employment in the US rose less than expected in January, according to figures released on Wednesday by ADP. Employment increased by 107,000 from December, versus expectations for a 145,000 jump. Meanwhile, December's gain was revised down to 158,000 from 164,000.

Small businesses with fewer than 50 employees added 25,000 jobs, while medium businesses with between 50 and 499 employees added 61,000. Large businesses with more than 50 employees created an additional 31,000 jobs.

The service sector added 77,000 jobs, while the goods-producing sector saw a 30,000 increase.

The data also showed that job-stayers saw a 5.2% rise in annual pay in January, down from 5.4% the month before. Job-changers saw pay growth of 7.2% - smallest annual gain since May 2021.

Nela Richardson, chief economist at ADP, said: "Progress on inflation has brightened the economic picture despite a slowdown in hiring and pay.

"Wages adjusted for inflation have improved over the past six months, and the economy looks like it's headed toward a soft landing in the U.S. and globally."