Beautiful Virgin Islands

Tuesday, Jun 24, 2025

America lost 301,000 private-sector jobs in January, ADP says

America lost 301,000 private-sector jobs in January, ADP says

Omicron threw a wrench into America's economy at the start of 2022: The US private sector lost hundreds of thousands of jobs in January, according to Wednesday's ADP Employment Report.

The loss of 301,000 private-sector positions came as a surprise to economists who had predicted businesses had added 207,000 jobs. It was also the first decline in the ADP report since December 2020.

The ADP report relies on private payrolls, unlike the government's jobs report that counts all workers. Also of note: ADP counts workers on a company's payroll, irrespective of whether they were out sick.

That Bureau of Labor Statistics' report is due Friday morning, with economists predicting 150,000 jobs added, according to Refinitiv. But not all economists are so optimistic. Goldman Sachs (GS) expects a decline of 250,000 jobs in Friday's report, for example.

"The details of the ADP employment report indicate a large and likely temporary drag from Omicron on January employment," economists at the bank said.

The drop in Wednesday's report was also a sharp slowdown from the December report, which showed a whopping 807,000 jobs added as the Omicron variant of Covid-19 wasn't as widespread at the time.

But in January, coronavirus cases spiked. That affected business, led to worker absenteeism and temporary school closures.

Underscoring multiplr pandemic labor market trends


Last month was a conflation of almost every labor market trend seen during the pandemic, including business closures, labor shortages, and negative effects from child care and school being closed, ADP chief economist Nela Richardson told reporters on a conference call Wednesday.

Almost all major industries recorded losses, led by leisure and hospitality, where more than 150,000 jobs were lost. Only mining added 4,000 positions.

Small businesses with fewer than 50 employees recorded the most losses — though businesses of all sizes shed positions.

Even so, "there is good evidence to suggest that January represents a speed bump, not a stop," as Omicron cases are starting to abate, Richardson said.

Employers' appetite to hire was strong going into 2022.

America still has more open positions than workers to hire — a trend that will likely continue this year. But as companies compete with each other for workers. they're all also trying to fend off soaring inflation. This has driven up wages, particularly in lower-paying services jobs and consumer-facing jobs, Richardson said.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
×