US private payrolls rise by 107,000 in January, much less than estimates

By Ovunc Kutlu

ISTANBUL (AA) - US private payrolls rose by 107,000 in January, much less than market estimates, according to a report released Wednesday by a research institute.

The market expectation for the figure was to show an increase of 145,000 jobs.

The figure for December 2023, meanwhile, was revised down from a gain of 164,000 to an increase of 158,000.

"The hiring slowdown of 2023 spilled into January, and pressure on wages continues to ease. The pay premium for job-switchers shrank to a new low last month," the ADP Research Institute in collaboration with Stanford Digital Economy Lab said.

Nela Richardson, the ADP chief economist, said progress on inflation has brightened the economic picture despite a slowdown in hiring and pay.

"Wages adjusted for inflation have improved over the past six months, and the economy looks like it's headed toward a soft landing in the U.S. and globally," she added.

Among businesses, small and mid-sized enterprises added 25,000 and 61,000 jobs, respectively, while large businesses experienced a gain of approximately 31,000.

The leisure and hospitality sector posted the highest gain, adding 28,000 jobs, followed by trade, transportation and utilities with an increase of 23,000.