Prior to this morning’s job report from ADP, economists polled by Reuters were predicting the addition of 185,000 jobs to private payrolls. Instead, payroll processor’s data showed 234,000 additional private-sector jobs.
“The job market juggernaut marches on,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Given the strong January job gain, 2018 is on track to be the eighth consecutive year in which the economy creates over 2 million jobs. If it falls short, it is likely because businesses can’t find workers to fill all the open job positions.”
On CNBC, Zandi characterized the job market as “excruciatingly tight,” and predicted that the unemployment rate would drop from 4.1 percent into the mid-3 percent range.
Where Jobs Are Growing
“We’ve kicked off the year with another month of unyielding job gains,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Service providers were firing on all cylinders, posting their strongest gain in more than a year. We also saw robust hiring from midsize and large companies, while job growth in smaller firms slowed slightly.”
The service-providing sector added 212,000 jobs total, with gains in trade/transportation/utilities (+51,000 jobs), leisure/hospitality (+46,000 jobs), business/professional services (+46,000 jobs), healthcare (+41,000 jobs), financial activities (+16,000 jobs) and education (+5,000 jobs). Information shed 3,000 jobs last month.
The goods-producing sector added 22,000 jobs total. Manufacturing added 12,000 jobs, while construction added 9,000 jobs and mining 1,000 jobs.
Friday’s report from the Labor Department, which includes data on unemployment and wage growth as well as job gains, is expected to show 180,000 jobs added to non-farm payrolls and an unemployment rate of 4.1 percent.
Tell Us What You Think
What’s your take on this report? We want to hear from you. Tell us your thoughts in the comments or join the conversation on Twitter.