Private survey shows U.S. employers added 192,000 jobs in January

A private survey by payroll processor ADP, released this morning in advance of Friday’s official January jobs report from the federal government, shows private-sector employers in the U.S. added 192,000 jobs in January. The Los Angeles Times reports that’s more than economists had expected, and indicates the forthcoming jobs report from the government may be a good one. “It feels to me that the job market is improving,” says Mark Zandi, chief economist for Moody’s Analytics. “Job growth has accelerated.” However, the government also reports this morning that the nation’s GDP unexpectedly contracted in the fourth quarter—a first since 2009. Job growth is now hovering at about 175,000 jobs per month, Zandi says, which should be enough to bring the unemployment rate down every month. Zandi predicts the unemployment rate, currently at 7.8%, will fall to 7.3% by the end of the year and will dip below 7% by this time next year. Although the ADP report shows weakness in the manufacturing sector, probably related to sluggish European economies, it also reveals growth in construction, trade, and professional and business services. Small businesses, with one to 49 employees, provided the bulk of the hiring—about 115,000 jobs total—ADP says. Medium-size businesses, with 50 to 499 employees, added 79,000. Large businesses actually shed 2,000 jobs during the month. The full story can be found here.