Job creation in the US private sector is lower than expected in January, shows ADP

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Private employment increased by 106,000 jobs last month; economists had forecast that private jobs would rise by 178,000 in January. Job creation in the US private sector rose far less than expected in January, suggesting some cooling in the job market. Private employment increased by 106,000 jobs last month, showed the ADP National Employment Report this Wednesday (1). December’s data was revised upwards to show 253,000 jobs created, rather than the 235,000 as previously reported. Economists polled by Reuters had forecast private jobs rising by 178,000 in January. The ADP report, jointly developed with Stanford’s Digital Economy Lab, was released ahead of a more comprehensive and closely watched employment report from the US Department of Labor. Government data for January will be released on Friday. The ADP numbers have been poor predictors of the private job creation data in the Labor Department’s employment report. According to a Reuters poll of economists, non-farm job creation in the US was likely 185,000 jobs in January, following an increase of 223,000 in December. The Federal Reserve (US BC) is expected to raise its benchmark interest rate by 25 basis points this Wednesday. Last year, the US central bank raised that rate by 4.25 percentage points from almost zero to a range of 4.25% to 4.50%, the highest since late 2007.

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