America lost 301,000 private sector jobs in January, ADP says
The loss of 301,000 jobs in the private sector surprised economists who had predicted that companies had added 207,000 jobs. It is also the first decline in the ADP report since December 2020.
The ADP report relies on private payrolls, unlike the government employment report which counts all workers. Also note: ADP counts workers on a company’s payroll, whether or not they have been sick.
“Details from ADP’s employment report point to a significant and likely temporary slowdown in Omicron’s January employment,” the bank’s economists said.
But in January, coronavirus cases spiked. This has affected business, led to worker absenteeism and temporary school closures.
Highlight multiple pandemic labor market trends
Almost every major industry recorded losses, led by leisure and hospitality, where more than 150,000 jobs were lost. Only mining added 4,000 jobs.
Small businesses with fewer than 50 employees saw the most losses, although businesses of all sizes lost positions.
Even so, “there is good evidence to suggest that January represents a speed bump, not a shutdown,” as Omicron cases begin to decline, Richardson said. Employers’ appetite for hiring was strong in 2022.
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