Updated January 31, 2024 9:17am EST
Private sector job growth cools sharply in January to 107,000, worse than expected: ADP
Hiring by private companies unexpectedly cooled in January, ADP says
By Megan Henney FOXBusiness
Hiring by U.S. companies slowed more than expected than expected in January, a possible sign the labor market is finally slowing in the face of higher interest rates, according to the ADP National Employment Report released Wednesday morning.
Companies added 107,000 jobs last month, missing the 145,000 gain that economists surveyed by Refinitiv predicted.
The weaker-than-expected report comes in the wake of an aggressive tightening campaign by the Federal Reserve, which has hiked interest rates to the highest level since 2001. Policymakers signaled last month that they are done raising rates amid signs that inflation is finally moderating and the economy is slowing.
In a welcoming sign for the Fed, wage growth continued to shrink in January.
Annual pay rose 5.2% last month, according to the report. For workers who switched jobs, wages climbed 7.2%, the smallest annual gain since May 2021.
"Wages adjusted for inflation have improved over the past six months, and the economy looks like it’s headed toward a soft landing in the U.S. and globally," said Nela Richardson, ADP chief economist.
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https://www.foxbusiness.com/economy/private-sector-job-growth-cools-sharply-january-worse-expected-adp
