US private payrolls increase modestly in January

[WASHINGTON] US private payrolls increased less than expected in January, the ADP’s national employment report showed on Wednesday (Feb 4).

Private employment rose by 22,000 jobs last month after a downwardly revised 37,000 increase in December. Economists polled by Reuters had forecast private employment advancing by 48,000 jobs after a previously reported 41,000 gain in December.

The ADP report is jointly developed with the Stanford Digital Economy Lab. It has been a poor predictor of the Bureau of Labor Statistics’ private payrolls estimate. The BLS’ more comprehensive and closely watched employment report for January, which was due for release on Friday, has been delayed by the partial shutdown of the federal government.

The three-day shutdown ended on Tuesday. The labour market has largely been in what economists call a “low-hire, low-fire” state, blamed on import tariffs and the rise of artificial intelligence.

Federal Reserve Chair Jerome Powell said last week “labour market indicators suggest that conditions may be stabilising after a period of gradual softening.”

The US central bank left its benchmark overnight interest rate in the 3.50 per cent-3.75 per cent range. REUTERS