Private Sector Employment Increased by 170,000 in January — Mostly From Small Businesses

The January 2012 ADP National Employment Report was just released and contains mostly good news about the economic recovery.

Employment in the U.S. nonfarm private business sector increased by 170,000 from December to January on a seasonally adjusted basis. The estimated advance in employment from November to December was revised down to 292,000 from the initially reported 325,000.

Employment in the private, service-providing sector rose 152,000 in January, and employment in the private, goods-producing sector increased 18,000 in January, while manufacturing employment increased 10,000.

Employment on large payrolls—those with 500 or more workers—increased 3,000, and employment on medium payrolls—those with 50 to 499 workers—rose 72,000 in January.

Employment on small payrolls—those with up to 49 workers—rose 95,000 that same period. Of the 95,000 jobs created by small businesses, 11,000 jobs were created by the goods producing sector and 84,000 jobs were created by the service-producing sector.

Employment in the construction industry increased 2,000 this month, which is down from an increase of 27,000 in December. Employment in the financial services sector increased 9,000 in January, which is up from an increase of 1,000 in December, and represents the largest gain in two years.