ADP National Employment Report: Private Sector Employment Decreased by 301,000 Jobs in January

Private sector employment decreased by 301,000 jobs from December to January according to the January ADP National Employment Report.  Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual data of those who are on a company’s payroll, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

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Total U.S. Nonfarm Private Employment:    -301,000

By Company Size

– Small businesses:     -144,000

  • 1-19 employees     -106,000
  • 20-49 employees     -38,000

– Medium businesses:     -59,000

  • 50-499 employees     -59,000

– Large businesses:     -98,000

  • 500-999 employees     -4,000
  • 1,000+ employees     -94,000

By Sector

– Goods-producing:     -27,000

  • Natural resources/mining     4,000
  • Construction     -10,000
  • Manufacturing     -21,000

– Service-providing:     -274,000

  • Trade/transportation/utilities     -62,000
  • Information     -8,000
  • Financial activities     -9,000
  • Professional/business services     -3,000
         – Professional/technical services     4,000
         – Management of companies/enterprises     -2,000
         – Administrative/support services     -6,000
  • Education/health services     -15,000
         – Health care/social assistance     -10,000
         – Education     -5,000
  • Leisure/hospitality     -154,000
  • Other services     -23,000

* Sum of components may not equal total, due to rounding.

– Franchise Employment**

  • Franchise jobs     1,600

**Complete details on franchise employment can be found here.

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“The labor market recovery took a step back at the start of 2022 due to the effect of the Omicron variant and its significant, though likely temporary, impact to job growth,” said Nela Richardson, chief economist, ADP. “The majority of industry sectors experienced job loss, marking the most recent decline since December 2020. Leisure and hospitality saw the largest setback after substantial gains in fourth quarter 2021, while small businesses were hit hardest by losses, erasing most of the job gains made in December 2021.”

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 460,000 U.S. clients employing nearly 26 million workers in the U.S. The December total of jobs added was revised from 807,000 to 776,000.

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