Econs Essay

412 WordsAug 10, 20122 Pages
January private-sector jobs rise 170,000: ADP By Ruth Mantell, MarketWatch WASHINGTON (MarketWatch) — Employment in the nation’s private sector is improving at a moderate pace, with two years of job gains now on the books, according to a monthly labor-market report released Wednesday by payrolls-processor Automatic Data Processing Inc. Nonfarm private employment rose 170,000 in January, marking the 24th consecutive month of gains, led by small businesses and the service-providing sector, according to ADP. In December, private employment rose 292,000, compared with a prior estimate of 325,000. “Other indicators suggest some firming of labor-market conditions as well, including the downward trend in unemployment claims, upturns in the components of consumer sentiment and confidence influenced by perceptions about the availability of jobs, and a rising trend in workers voluntary quitting their jobs,” said Joel Prakken, chairman of Macroeconomic Advisers, which produces the ADP report. Indeed, ADP’s report echoes other recent positive employment data. For starters, initial jobless claims are down about 10% from the pace of filings in the prior year. In addition, while there was a dip in January for an overall gauge of consumer confidence, the data also showed that consumers’ outlook for jobs ticked higher. Also, the proportion of workers leaving their jobs by quitting is up from last year, according to Labor Department data. On Wall Street, stocks started out broadly higher on the heels of the ADP data, with the Dow Jones Industrial Average (DJI:DJIA) adding about 100 points. Read more in Market Snapshot. Details By firm size, nonfarm private employment in January rose 95,000 at small businesses, 72,000 at medium businesses, and 3,000 at large businesses, according to ADP. By sector, service-provider employment rose 152,000, while goods producers added

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