The United States added 170,000 private sector jobs in January, based on the ADP private sector payrolls, which includes the service-providing sector and small businesses.
The ADP jobs report is important to markets as it is released prior to the key Non-farm payroll report due on Friday and gives some indication of the overall employment situation in the United States prior to the official US Labour Department report.
Today’s data were disappointing as they came in lower than the expected 185,000, and much lower than previous month. December’s private payrolls were revised down to an increase of 292,000 from the previously reported 325,000.
The unemployment rate due on Friday is expected to remain at 8.5 percent.
The focus now turns to ISM manufacturing PMI due later today. The index is forecast to rise. If it does, it will indicate the US economy is expanding.