January Jobs Lower than Forecast, Still Show Growth Spencer Platt/Getty Images

January Jobs Lower than Forecast, Still Show Growth

Although the number was less than expected, it still signals a strong labor market that is growing.

The private sector added 213,000 new jobs in January, missing estimates by 12,000, according to payroll company ADP.

It’s a big drop from December’s gain of 253,000 jobs that beat forecasts and was revised up from initial reports.

Although the number was less than expected, it still signals a strong labor market that is growing. Bloomberg says it shows jobs can still be added despite the drop in oil prices and a struggling global economy.

Economist Mark Zandi with Moody’s Analytics backed that assessment up: “Employment posted another solid gain in January, although the pace of growth is slower than in recent months.” Moody’s and ADP work together on employment figures.

A breakdown of the numbers reveals larger companies with 500 or more workers increased payroll by 40,000 jobs. Medium size businesses with 50 to 499 employees posted the biggest gains with 95,000 new jobs while small businesses added 78,000 workers to staffs.

Most of the new jobs came in the service industry with 183,000 new positions. followed by construction and factories.

The Labor Department will release its report this Friday.

 

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