U.S. markets open in 5 hours 8 minutes
  • S&P Futures

    -33.50 (-0.80%)
  • Dow Futures

    -182.00 (-0.52%)
  • Nasdaq Futures

    -176.25 (-1.32%)
  • Russell 2000 Futures

    -29.00 (-1.31%)
  • Crude Oil

    -0.74 (-1.14%)
  • Gold

    -1.30 (-0.07%)
  • Silver

    +0.02 (+0.07%)

    +0.0013 (+0.11%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +4.98 (+29.84%)

    -0.0002 (-0.01%)

    +0.0720 (+0.07%)

    -2,809.44 (-4.82%)
  • CMC Crypto 200

    -88.18 (-5.65%)
  • FTSE 100

    -158.58 (-2.23%)
  • Nikkei 225

    -909.71 (-3.08%)

Private Sector Jobs Data Better Than Expected

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Private-sector payrolls in January grew better than expected, as evident by this morning’s Automatic Data Processing (ADP) release. A total of 174K new private-sector jobs was several times higher than the 48K expected, following an upwardly revised -78K for December from an originally reported -123K last month. Services produced 88% of all new private-sector jobs in the month, 156K, to Goods-producing jobs having created 19K.

Education and Healthcare jobs regained the top spot after a few months of turbulence with massive Leisure & Hospitality re-hires (and subsequent re-layoffs), at 54K new positions last month. Business hires grew 40K, followed by Leisure & Hospitality growing again, +35K. The breakdown for Goods-producing jobs is much simpler: 18K to Construction, 1K to Manufacturing. Other segments, like Mining and Natural Resources, were flat for the month.

This marks the eighth month in the past nine that ADP private-sector payrolls have posted gains, going back to April’s pandemic death-grip on the labor market, which saw a loss of 19.4 million and set a new, hopefully insurmountable, low. Friday’s non-farm payroll report from the U.S. Bureau of Labor Statistics (BLS) is expected to yield 105K new jobs for January, from a crushing -140K posted for December. The Unemployment Rate is expected to remain at 6.7%, with a dwindling Labor Force Participation Rate.

After today’s opening bell, Markit Services PMI and ISM Services results are expected. Earlier in the week, the sister-reports Manufacturing PMI and ISM posted 59.2 and 58.7%, respectively. Expectations for today’s ISM Services print come in at 57.0%, for the eighth straight month north of 55%, going back to similar pandemic difficulties in April and May of last year.

Nasdaq futures are up again, pointing once more toward new all-time highs on the tech-heavy index. The Dow and S&P 500 are relatively flat, although they too have enjoyed a recent burst of enthusiasm. The closer financial relief is to passing Congress, the sooner consumer businesses will regain traction, with plenty of pent-up demand across a variety of industries. Cases of Covid-19 are finally off their post-holiday season peak, now at seven-day average totals not seen in four months. Approximately 34 million doses have been administered in the U.S. so far.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research