US private sector job growth slowed in January

Wednesday 05 February 2014 14.50
US economy added 175,000 private sector jobs last month, new figures show
US economy added 175,000 private sector jobs last month, new figures show

The US economy added 175,000 private sector jobs in January, fewer than in December, with severe winter weather taking its toll on job growth, payrolls firm ADP said today.

The January number marked the second consecutive month of slowing job growth after November's surge to 289,000, the peak for 2013. ADP revised the December level lower to 227,000.

Last month's job growth came in slightly below analysts' consensus estimate of 178,000.

The January reading "is in line with the average monthly growth throughout 2013," said Carlos Rodriguez, president and chief executive of ADP.

As usual, most of the jobs - 160,000 - were added in the US massive services sector. The goods-producing sector only gained 16,000 jobs, with nearly half of that in the construction industry. The US manufacturing sector lost 12,000 jobs, the first decline since July 2013.

The ADP report comes before Friday's Labor Department data on job growth and unemployment for January.

Analysts on average are forecasting job growth picked up in January, to 175,000 jobs from a paltry 74,000 jobs in December.

The US unemployment rate is expected to remain unchanged at 6.7%.