ADP Promises Slowing Job Growth Is Temporary
Friday’s Employment Situation Report from the Department of Labor’s Bureau of Labor Statistics is much anticipated by economists after December’s extremely weak job growth and a series of recent weak economic data releases. If the report shows strong job creation, the positive outlook for the labor market recovery could be revived, but if the numbers are weak, concerns for the economy’s ability to create jobs could be renewed.
With the release of payroll processor ADP’s National Employment Report for the month of January, economists were given a sign that a new employment trend is indeed on the rise. But unlike early last year, when fears of economic instability, political crisis, and low consumer spending kept employers from increasing hiring, the current problem is the freezing temperatures across much of the United States.
Following December’s downwardly revised 227,000 job gain, U.S. employers expanded payrolls by just 175,000 in the past month. “Cold and stormy winter weather continued to weigh on the job numbers,” according to Moody’s Analytics chief economist Mark Zandi, whose firm helps compile payroll processor ADP’s National Employment Report. However, “underlying job growth, abstracting from the weather, remains sturdy,” he said in the press release announcing the month’s numbers.
“It’s not an auspicious start,” he said on a conference call on Wednesday, per the Los Angeles Times, ”but I think we’re still going to have a better year.” Zandi expects average monthly job growth to increase from the 175,000-to-200,000 pace of the last three years to approximately 225,000.