Another payroll processor ADP jobs report shows the private sector added 175,000 jobs in January, missing Wall Street estimates for a gain of 180,000 jobs. Although small businesses added more jobs than larger companies, January’s job growth is the slowest pace for small companies since August.
As a service sector index released earlier today suggested, service providers grew more than manufacturers. For companies with fewer than 20 employees, service providers added 37,000 new positions, while goods producers added just 6,000.
And the same was true for slightly larger businesses with 20 to 49 employees, as service providers grew by 27,000 workers, while manufacturers by just 5,000.
The ADP National Employment Report is compiled from anonymous payroll data of ADP client companies. The report measures payroll information for nearly 24 million U.S. workers.
In January’s ADP National Employment Report, small businesses with fewer than 50 employees created 75,000 positions, followed by medium businesses, which created 66,000 new jobs. Large businesses were far behind, as companies with 500 or more employees adding just 34,000 new jobs.
The Labor Department will release its December jobs report on Friday, however, economists are already trying to scapegoat “cold weather” and attempting to ignore economic realities layer out in the new Congressional Budget Office report.
“Cold and stormy winter weather continued to weigh on the job numbers. Underlying job growth, abstracting from the weather, remains sturdy,” said Mark Zandi, Moody’s Analytics Chief Economist.
“Gains are broad based across industries and company sizes, the biggest exception being manufacturing, which shed jobs, but that is not expected to continue,” he said.
But that is nowhere near the economic truth, at all.
Service sector job creation, which provides low-wage, largely part-time positions, has been outpacing higher paying manufacturing jobs since the Obama administration declared a recovery in 2009. And the trend has worsened with the passage of ObamaCare, which infused a large amount of expense and uncertainty in the labor market.
Though the CBO just revised the report showing how ObamaCare has and will incentivize people not to seek full-time gainful employment, as well as offers employers motivation to not hire, this grim new economic reality has been plaguing the U.S. economy since early 2010.