Private sector employment in the U.S. increased by much more than expected in the month of January, according to a report released by payroll processor ADP on Wednesday.<\/p>\n
ADP said private sector employment jumped by 174,000 jobs in January after decreasing by a revised 78,000 jobs in December.<\/p>\n
Economists had expected employment to rise by 49,000 jobs compared to the loss of 123,000 jobs originally reported for the previous month.<\/p>\n
“The labor market continues its slow recovery amid COVID-19 headwinds,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.<\/p>\n
The report said employment in the service-providing sector increased by 156,000 jobs, reflecting notable job growth in healthcare\/social assistance, leisure\/hospitality and professional\/business<\/span> services.<\/p>\n Employment in the goods-producing sector also rose by 19,000 jobs during the month, reflecting an uptick in construction jobs.<\/p>\n ADP also said employment at mid-sized business climbed by 84,000 jobs, while small businesses added 51,000 jobs and employment at large businesses edged up by 39,000 jobs.<\/p>\n “Although job losses were previously concentrated among small and midsized businesses, we are now seeing signs of the prolonged impact of the pandemic on large companies as well,” said Yildirmaz.<\/p>\n On Friday, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.<\/p>\n Economists currently expect employment to rise by 50,000 jobs in January after falling by 140,000 jobs in December. The unemployment rate is expected to hold at 8.7 percent. <\/p>\n