Despite Shutdown, January Private Sector Job Growth Exceeds Expectations
The private sector added 213,000 jobs in January, exceeding expectations of 178,000 jobs, according to the ADP National Employment report. The jobs number contradicts experts who predicted the government shutdown could negatively impact private employment.
Hiring was solid across most sectors, the ADP said: Education and health care added 38,000 jobs, while professional and business services, which include high-paying occupations such as accounting, engineering, and architects, gained 46,000. Manufacturers added 33,000 and construction firms gained 35,000 jobs.
Chief economist of Moody’s, Mark Zandi said, “The job market weathered the government shutdown well. Despite the severe disruptions, businesses continued to add aggressively to their payrolls. As long as businesses hire strongly the economic expansion will continue on.”
December 2018 job growth also soared past expectations, adding 312,000 new nonfarm payroll jobs. Wages also jumped 3.2 percent from 2017 and .4 percent over November.
Just 176,000 jobs were expected for December and wages were expected to rise by 3 percent.
Payroll growth for 2018 stood at 2.6 million, the highest since 2015, and the health care industry added over 50,000 new jobs for the month.