ADP reported that in January private businesses in the United States unexpectedly cut 301K jobs, versus a consensus of a job gain of 207K. The report showed the first job loss since December of 2020 and the biggest since April 2020. Business sentiment has been hurt by the spread of the omicron coronavirus variant, rising interest rates and concerns about the US Administration’s handling of the economy.
January 2022 U.S. Employment Report
The Covid-19 virus again threatens the global economy again. Is this Deja vu? Over the past few years, the world’s economy was shut down and much of America had stay at home orders the threat of Omicron is causing a nervous reminder of those dark days. Jobless claims numbers had been improving but unfortunately the story is much worse as people have not all been able to return to work with jobs replaced or been left devastated from lost income.
Private payroll company ADP reported that US jobs unexpectedly cut 301K jobs in January of 2022, the first job loss since December of 2020 and the biggest since April 2020. Market expectations were for a job gain of 207K
Where the Jobs Were Lost:
- Services sector (-274K), namely leisure and hospitality (-154K); trade, transportation and utilities (-62K); education and health (-15K); financial activities (-9K); and information (-8K).
- Goods-producing sector lost 27K jobs, due to manufacturing (-21K) and construction (-10K)
Where the Jobs Were Gained:
- Natural resources and mining sector added 4K jobs.
Company Size Hiring and Firing
- Small companies cut 144K payrolls, large 98K and midsized 59K.
- Job gains for December were revised lower to show a 776K job gain instead of 807K previously reported.
From The TraderCommunity Research Desk