ADP Employment Change 205K vs 195K Expected

(Updated - February 3, 2016 8:19 AM EST)

• ADP Employment Change 205K vs 195K Expected

Private sector employment increased by 205,000 jobs from December to January according to the January ADP National Employment Report. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by ADP in collaboration with Moody's Analytics. The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

January 2016 Report Highlights*

View the ADP National Employment Report Infographic atwww.adpemploymentreport.com.

Total U.S. Nonfarm Private Employment: 205,000

• By Company Size
  • Small businesses: 79,000
    • 1-19 employees 47,000
    • 20-49 employees 32,000
  • Medium businesses: 82,000
    • 50-499 employees 82,000
  • Large businesses: 44,000
    • 500-999 employees 15,000
    • 1,000+ employees 30,000
• By Sector
  • Goods-producing 13,000
  • Service-providing 192,000
• Industry Snapshot
  • Construction 21,000
  • Manufacturing 0
  • Trade/transportation/utilities 35,000
  • Financial activities 19,000
  • Professional/business services 44,000

* Sum of components may not equal total, due to rounding.

Payrolls for businesses with 49 or fewer employees increased by 79,000 jobs in January, down from December's upwardly revised 101,000. Employment among companies with 50-499 employees increased by 82,000 jobs, up still further from December's upwardly revised 77,000. Employment at large companies -- those with 500 or more employees -- came in at 44,000, half of December's downwardly revised 88,000. Companies with 500-999 added 15,000 jobs, while companies with over 1,000 employees gained 30,000 jobs.

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.

"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."

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