US Private Sector Job Growth Exceeds Expectations in Jan 2025

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.