Companies in the private sector added 183,000 jobs in January, payroll processing firm ADP said on Wednesday.
The figure is above economists’ estimates of 150,000 jobs and also more than the prior month’s reading of 122,000.
“We had a strong start to 2025, but it masked a dichotomy in the labor market,” said Nela Richardson, ADP’s chief economist. “Consumer-facing industries drove hiring, while job growth was weaker in business services and production.”
PRIVATE SECTOR ADDS 122,000 JOBS IN DECEMBER, BELOW EXPECTATIONS, ADP SAYS
Trade, transportation and utilities added 56,000 positions, leading to job creation in January. Leisure and hospitality added 54,000 jobs; education and health services contributed 20,000; and information added 18,000.
Hiring slowed in manufacturing (-13,000), while elsewhere in the goods sector, natural resources and mining added 4,000 jobs, and construction added 3,000 positions.
US ECONOMY ADDED 256K JOBS IN DECEMBER, WELL ABOVE EXPECTATIONS
Large businesses – those with 500 or more employees – added 97,000 jobs in the month. Businesses with 50 to 499 employees hired 9,000 workers. Establishments with fewer than 50 employees added 5,000 jobs.
The ADP data is released before the Labor Department’s nonfarm payrolls report that is due on Friday morning and can differ notably. The government data is expected to show an increase of 170,000 positions, down from the much larger than anticipated gain of 256,000 in December.
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