ADP National Employment Report: Private Sector Employment Increased by 291,000 Jobs in January
Thursday, February 6th, 2020
Private sector employment increased by 291,000 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 the ADP Research Institute® 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 2020 Report Highlights*
Total U.S. Nonfarm Private Employment: 291,000
By Company Size
- Small businesses: 94,000
1-19 employees 26,000
20-49 employees 68,000
- Medium businesses: 128,000
50-499 employees 128,000
- Large businesses: 69,000
500-999 employees 27,000
1,000+ employees 42,000
By Sector
- Goods-producing: 54,000
Natural resources/mining -2,000
Construction 47,000
Manufacturing 10,000
- Service-providing: 237,000
Trade/transportation/utilities 8,000
Information 2,000
Financial activities 2,000
Professional/business services 49,000
- Professional/technical services 29,000
- Management of companies/enterprises 6,000
- Administrative/support services 14,000
Education/health services 70,000
- Health care/social assistance 47,000
- Education 24,000
Leisure/hospitality 96,000
Other services 10,000
* Sum of components may not equal total, due to rounding.
- Franchise Employment**
Franchise jobs 45,100
"The labor market experienced expanded payrolls in January," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Goods producers added jobs, particularly in construction and manufacturing, while service providers experienced a large gain, led by leisure and hospitality. Job creation was strong among midsized companies, though small companies enjoyed the strongest performance in the last 18 months."
Mark Zandi, chief economist of Moody's Analytics, said, "Mild winter weather provided a significant boost to the January employment gain. The leisure and hospitality and construction industries in particular experienced an outsized increase in jobs. Abstracting from the vagaries of the data underlying job growth is close to 125,000 per month, which is consistent with low and stable unemployment."
The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the U.S. The December total of jobs added was revised down from 202,000 to 199,000.
