Following December's miraculous surge in employment (to the biggest improvement in a year), ADP Employment tumbled back a more "normal" 205k in January (stilll beating expectations of 195k). Services dominated (192k vs 13k for goods). Once again manufacturing disappoints with no change in employment as large business hiring slows notably.
ADP employment cyhange dropped notably but still beat expectations...
As ADP catches down to reality comiong from initial claims...
Change in Nonfarm Private Employment
Change in Total Nonfarm Private Employment
Change By Company Size
Change By Selected Industry
The "recovery" continues to be all Services, little Goods:
- Goods-producing employment rose by 13,000 jobs in January, well off from December’s upwardly revised 30,000. The construction industry added 21,000 jobs, which was roughly in line with the average monthly jobs gained during 2015. Meanwhile, manufacturing neither added nor lost jobs.
- Service-providing employment rose by 192,000 jobs in January, down from an upwardly revised 237,000 in December. The ADP National Employment Report indicates that professional/business services contributed 44,000 jobs, down from 69,000 in December. Trade/transportation/utilities grew by 35,000, up slightly from a downwardly revised 33,000 the previous month. The 19,000 new jobs added in financial activities were the most in that sector since March 2006.
The commentary from ADP: "One of the main reasons for lower overall employment gains in January was the drop off in jobs added at the largest companies compared to December. These businesses are more sensitive to current economic conditions than small and mid-sized companies,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Over the past year, businesses with less than 500 employees have created nearly 80 percent of new jobs.”
Mark Zandi, chief economist of Moody’s Analytics, said,
“Job growth remains strong despite the turmoil in the global economy and financial markets. Manufacturers and energy companies are reducing payrolls, but job gains across all other industries remain robust. The U.S. economy remains on track to return to full employment by mid-year.”
Full breakdown:
ADP National Employment Report: Private Sector Employment Increased by 205,000 Jobs in January " border="0" height="1598" src="http://www.adpemploymentreport.com/2016/January/NER/images/infographic/m..." width="598" />