Financial News: U.S. Private Sector Job Growth Exceeds Estimates In

U.S. Private Sector Job Growth Exceeds Estimates In January

02/05/2025 - 09:02:00 (RTTNews)

(RTTNews) - Payroll processor ADP released a report on Wednesday showing private sector employment in the U.S. increased by more than expected in the month of January.

ADP said private sector employment climbed by 183,000 jobs in January after rising by an upwardly revised 176,000 jobs in December.

Economists had expected private sector employment to rise by 150,000 jobs compared to the addition of 122,000 jobs originally reported for the previous month.

"We had a strong start to 2025 but it masked a dichotomy in the labor market," said ADP chief economist Nela Richardson. "Consumer-facing industries drove hiring, while job growth was weaker in business services and production."

ADP said hiring momentum in the fourth quarter of 2024 carried into January with some exceptions, including manufacturing, which shed 13,000 jobs.

The report also said year-over-year pay growth for job-stayers was 4.7 percent, while pay growth for job-changers was 6.8 percent.

On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.

Economists currently expect employment to climb by 170,000 jobs in January after jumping by 256,000 jobs in December, while the unemployment rate is expected to hold at 4.1 percent.

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