US Private Sector Job Growth Exceeds Expectations in Jan 2025
US Private Sector Job Growth Exceeds Expectations in Jan 2025

US Private Sector Job Growth Exceeds Expectations in Jan 2025

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The ADP National Employment Report revealed that U.S. private sector employment rose by 183,000 jobs in January 2025, surpassing the forecasted 150,000. This growth was driven primarily by consumer-facing industries like trade, transportation, and leisure, which added 110,000 jobs collectively, while manufacturing saw a decline of 13,000 jobs. Despite the overall positive numbers, the report highlighted a dichotomy in the labor market with weaker growth in business services and production sectors. The report's findings come ahead of the U.S. Labor Department's upcoming non-farm payrolls report, which is expected to show slower hiring compared to December's figures. Wage growth remained steady with a 4.7% increase for job-stayers and 6.8% for job-changers, signaling easing wage pressures. The data plays a crucial role as Federal Reserve officials evaluate their next policy moves amidst ongoing economic uncertainties.

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