As per ADP and Moody’s Analytics, shrugging off the effects of the longest ever shut down in the U.S. history, private payrolls have grown in January more than the expectations.
As per the data, companies added 213,000 jobs this month. Economists polled by Refinitiv expected that the payroll would grow by 178,000.
The strong growth in the labor market has come even after the 35 days extended partial shutdown caused by the scuffle between the Trump administration and the Congress over the funding of U.S.-Mexico border.
“The job market weathered the government shutdown well. Despite the severe disruptions, businesses continued to add aggressively to their payrolls,” said Mark Zandi, chief economist at Moody’s Analytics. “As long as businesses hire strongly, the economic expansion will continue on.”
As per the report, Medium-sized businesses, those that employ 50 to 499 people, led the charge by adding 84,000 payrolls. Large companies, which have a minimum of 500 employees, expanded their headcount by 66,000. Small businesses added 63,000 jobs.
The services sector contributed the highest share of the jobs this month, with 145,000 jobs being added. And in the service sector, careers in professional and business services grew by 46,000 while education and health services payrolls expanded by 38,000. The goods-producing industry consisting of construction, mining and manufacturing, added 68,000 jobs.
This report has come two days before the release of the Labor Department’s monthly jobs report. As per economists’ expectations, the government’s tally will show a gain of about 168,000 jobs for January.
According to the statistics, December had seen the highest growth in private jobs with numbers of 263000. And the last year’s tally in January was at 241000 job growth. February 2018 had also recorded the same amount of job growth in the Private sector. However, from March 2018 the graph slowed down. In the respective four months till June 2018, the mark could not touch 200000. March had 198000; April had 170000, whereas May and June had 196000 and 178000 job growth in the Private sector. July, August, and September had added private jobs by 211000, 162000 and 211000 respectively. October 2018 had seen a considerable rise again and saw a growth of 239000 posts from the previous month. But, due to economic impacts of the trade war between the U.S. and China, in November the job count just grew by 148000, showing the slowest growth in the whole year.
