January month’s ADP employment report
The ADP National Employment Report for January 2018 was released on February 8, 2018. The report showed an improvement in the private sector employment. ADP employment report posted 234,000 jobs in January 2018 as compared to 250,000 in December, beating the market expectation of 186,000.
Key highlights from the January report
- the professional and business sectors added 46,000 jobs in January 2018.
- the financial activities sector added 16,000 jobs in the same month.
- the education and health sectors added 47,000 jobs
- the leisure and hospitality sector added 46,000 jobs
- other services added 9,000 jobs
- the trade, transportation, and utilities sectors added 51,000 jobs in that month.
Of the 234,000 jobs added in the private sector in January, 58,000 jobs were in the small business category, 91,000 jobs were in the medium business category, and 85,000 jobs were in the large business category.
The stronger improvement in the labor market is a positive sign for the US economy and for the markets. In the month of January 2018, the US markets showed solid improvements. Major indexes such as the S&P 500 Index (SPX-INDEX) (SPY) rose 5.6%, the Dow Jones Industrial Average (DJIA-INDEX) rose 5.8%, and the NASDAQ Composite Index (COMP-INDEX) rose 7.3%.
However, during the end of January 2018, these indexes showed some nervousness. Many market participants are expect that the global growth reached to a peaked level and this is creating worries among investor’s mind and they became panicked. This lead to a huge sell-off in the market during the first week of February 2018.
In the next part of this series, we’ll analyze the performance of the US non-farm payroll in January 2018.