U.S. Hiring And Wage Growth Slowed In January, ADP Data Show
US companies added fewer jobs than forecast at the start of the year, consistent with a gradually cooling labor market.
(Bloomberg) -- US companies added fewer jobs than forecast at the start of the year, consistent with a gradually cooling labor market.
Private payrolls increased 107,000 in January from a downwardly revised 158,000 gain in December, according to figures published Wednesday by the ADP Research Institute in collaboration with Stanford Digital Economy Lab.
While hiring slowed, it was broad-based across industries and regions, signaling demand for workers remains healthy. The median estimate in a Bloomberg survey of economists called for a 150,000 increase.
Nominal wage growth continued to slow, the data show.
Labor demand and wage growth have moderated from their post-pandemic recovery highs in the past year. Data out Tuesday showed fewer Americans are quitting their jobs, an indication they may be less confident they could find a new one or one that pays better.
Recent high-profile job-cuts announcements from companies including United States Parcel Service Inc. and PayPal Holdings Inc. suggest hiring momentum will slow in coming months.
Federal Reserve officials, who are expected to hold interest rates steady after their meeting later Wednesday, will be looking for further signs of a cooldown as they assess when to start cutting borrowing costs.
All industries except the information sector added jobs in the ADP data, with leisure and hospitality seeing the largest payroll and wage growth.
The annual wage increase for workers who switched jobs was 7.2% in January, the smallest gain since May 2021. Pay growth also cooled for people who stayed in their job.
A separate measure of labor costs cooled by more than forecast in the fourth quarter, a Bureau of Labor Statistics report showed Wednesday, another sign of easing inflation pressures.
The government’s monthly jobs report due Friday will provide further insights on the labor market. Economists forecast US private employers added 165,000 in January.
--With assistance from Augusta Saraiva and Katia Dmitrieva.
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