ADP: U.S. added 107,000 private jobs in January as hiring slows

Jan. 31 (UPI) -- Private payroll processor ADP on Wednesday said job growth declined in January.

ADP's monthly national employment report showed the U.S. economy added 107,000 private sector jobs in January, down from the month prior.

ADP measures private sector jobs using payroll data of client companies served by ADP.

Service jobs accounted for 77,000 of the private-sector jobs created in January while the goods-producing sector accounted for 30,000 new hires.

ADP's January job numbers showed that mid-sized companies led private sector hiring with 53,000 jobs, followed by large companies with 500 or more employees posting 31,000 hires.

Small companies with up to 49 employees reported 25,000 new hires in January.

It also found that worker pay gains weakened slightly, with year-over-year pay for workers who remained in the same job fell to 5.2% in January, down from 5.4% the month prior. For people who changed jobs, however, pay was up 7.2% but marked the smallest yearly gain since May 2021.

"Progress on inflation has brightened the economic picture despite a slowdown in hiring and pay," ADP chief economist Nela Richardson said in a statement. "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."

December's 2023 ADP report showed 164,000 private sector jobs created. That number was revised to 158,000. It was the fourth straight monthly increase, according to ADP.

Those December totals were accelerated by more leisure and hospitality hiring. ADP said then that the numbers showed a return to pre-pandemic labor market hiring.

The Federal reserve Board is meeting Wednesday as inflation weakens and will deliver its first policy decision for 2024 interest rates. According to the Fed's preferred inflation gauge, inflation measured by the personal consumption index was 2.9% over the past year.