Private payroll growth steady in January: ADP
The growth of private payrolls stayed flat in January for employees staying in their jobs, according to a report released Wednesday.
The ADP National Employment Report revealed that pay growth was steady at 7.3 percent for the second straight month. While most industries showed stable growth, the information industry actually saw pay growth decelerate from 7 percent to 6.6 percent.
Pay for employees in the leisure and hospitality industry grew the most last month at 10.1 percent, which is the same rate of growth as the month before.
Pay growth accelerated to 15.4 percent for those who changed jobs last month.
The report also states that the median pay level for employees who stayed in their jobs last month was $57,200.
The level of growth for those staying in their jobs rose to as high as 7.8 percent in September before dropping somewhat in recent months. It fell to as low as 1.2 percent in December 2020 in light of the economic fallout of the COVID-19 pandemic.
Wyoming and Oregon saw the largest private payroll increase last month, at 11 percent and 10 percent, respectively. Connecticut saw the least significant increase at 5.9 percent, followed by New Jersey at 6 percent.
The report also found that private employers added 106,000 jobs in January, but employment during the week surveyed was “soft” as many parts of the country were facing extreme weather. California was facing major flooding, while ice and snow dropped in the eastern and central United States.
“In January, we saw the impact of weather-related disruptions on employment during our reference week,” ADP Chief Economist Nela Richardson said in the report. “Hiring was stronger during other weeks of the month, in line with the strength we saw late last year.”
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