ADP reported that there were 192,000 nonfarm payroll workers added in January. This was higher than the revised 185,000 net new workers hired in December, and it was mostly in-line with consensus estimates. Small and medium-sized firms (e.g., those with less than 500 employees) were the primary contributors, with large businesses shedding 2,000.
Manufacturers lost 3,000 workers on net in January, a reversal of the 19,000 workers added in December. Indeed, we have seen several reports of manufacturers pulling back on hiring and investment lately, with uncertainties about sales and the fiscal environment paramount.
In contrast, the bulk of the jobs created in January came from professional and business services (up 40,000), trade/transportation/utilities (up 33,000), and construction (up 15,000).
Chad Moutray is chief economist, National Association of Manufacturers.