Private payrolls rose by 205,000 in January, according to ADP Research Institute.
Economists had estimated that private payrolls grew by 193,000 last month, down from the prior reading of 267,000 (revised from 257,000), which was the highest for 2015.
In the release, ADP’s Ahu Yildirmaz said, “One of the main reasons for lower overall employment gains in January was the drop off in jobs added at the largest companies compared to December. These businesses are more sensitive to current economic conditions than small and mid-sized companies.”
Employment in the larger service-producing sector rose by 192,000, while the goods-producing sector added 13,000 jobs.
The release comes ahead of Friday’s official jobs report, which is also projected to show a month-on-month slowdown in the pace of jobs growth. Economists have noted that ADP often overstates or underestimates the print from the Bureau of Labour Statistics.
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