The health and education sector added 17,000 jobs in January, and median wages for those who remained in the sector rose 5.9%, according to the ADP National Employment Report released Wednesday.
Overall, private sector employment added 107,000 jobs in January, with annual payrolls up 5.2% from the same month last year.
This report was produced by the ADP Institute in collaboration with the Stanford Digital Economy Lab.
“Despite weakness in employment and wages, the economic picture brightens with progress in inflation,” ADP Chief Economist Nella Richardson said in a press release to coincide with the report's publication. . “Inflation-adjusted wages have improved over the past six years.”
Months later, the economy appears to be headed for a soft landing in the United States and globally. ”
The National Employment Report analyzes the pay transactions of more than 25 million U.S. workers. Employment across the services sector rose by 77,000 in January, the data showed. The largest sector increase in January was in leisure and hospitality, which added 28,000 jobs.
By region, the largest growth in January was in the South, where employment rose by 57,000 people. Private employers in the Northeast added 32,000 jobs over the month, followed by the Midwest, which added 24,000 jobs, and the West, which added just 2,000 jobs.
Medium-sized businesses (50 to 499 employees) gained the most jobs last month, adding 61,000 jobs. Large companies (500 or more employees) gained 31,000 jobs, and small businesses (1-49 employees) gained 25,000 jobs.
Wage growth continued to decline
“YoY wage growth for job leavers in January reached 5.2%, down from 5.4% in 2019.
December. Job changers' salaries increased by 7.2%, the report said, the smallest annual increase since May 2021.
Companies with 1 to 19 employees had the smallest median annual salary change, at 4.5%. The change was 5.4% for businesses with 20 to 49 employees, 5.5% for employers with 50 to 249 employees, 5.5% for businesses with 250 to 499 employees, and 5.1% for businesses with 500 or more employees.
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