The non-farm private sector lost 301,000 jobs in January, according to the ADP National Employment Report. This follows a revised December increase of 807,000 jobs.
Small businesses with fewer than 50 employees lost 144,000 jobs. Medium-sized businesses with 50-499 employees lost 59,000, while large businesses decreased by 98,000 jobs.
“The labor market recovery took a step back at the start of 2022 due to the effect of the Omicron variant and its significant, though likely temporary, impact to job growth,” said Nela Richardson, chief economist, ADP. “The majority of industry sectors experienced job loss, marking the most recent decline since December 2020. Leisure and hospitality saw the largest setback after substantial gains in fourth quarter 2021, while small businesses were hit hardest by losses, erasing most of the job gains made in December 2021.”
Service-providing employment fell the most with 274,000 jobs lost, driven by losses in the leisure & hospitality and trade/transportation/utilities services sectors, which fell by 154,000 and 62,000 jobs respectively.
Goods-producing employment fell by 27,000 jobs. The manufacturing sector lost 21,000 jobs and construction fell by 10,000 jobs. Natural resources/mining fell by 4,000 jobs.
Read the ADP report.
