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‘Strong start,’ US adds 246,000 private sector jobs in January, ADP reports

February 01, 2017

US private-sector employment rose by 246,000 jobs from December to January, according to the ADP national employment report. This is a jump from 151,000 jobs added in December and the largest increase since June, when private-sector employment rose by 262,000 jobs.

December’s increase was revised down from 153,000.

Economists surveyed by Reuters had forecast the report would show a gain of 165,000 jobs, with estimates ranging from 140,000 to 200,000.

“2017 got off to a strong start in the job market,” said Mark Zandi, chief economist of Moody's Analytics. “Job growth is solid across most industries and company sizes. Even the energy sector is adding to payrolls again.”

The number of goods-producing jobs rose by 46,000, with a gain of 25,000 construction jobs. Service-providing jobs rose by 201,000, including 71,000 jobs in the professional/business services sector and 63,000 jobs in trade, transportation and utilities.

“The US labor market is hitting on all cylinders and we saw small and midsized businesses perform exceptionally well,” said Ahu Yildirmaz, VP and co-head of the ADP Research Institute. “Further analysis shows that services gains have rebounded from their tepid December pace, adding 201,000 jobs. The goods producers added 46,000 jobs, which is the strongest job growth that sector has seen in the last two years.”

Large businesses added 83,000 jobs in January. Midsize businesses added 102,000 jobs and small businesses added 62,000 jobs.

The ADP National Employment report is produced by ADP (NASD: ADP) in collaboration with Moody’s Analytics.