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Wed Feb 1, 2017, 10:37 AM

ADP National Employment Report: Private Sector Employment Increased by 246,000 Jobs in January [View all]

Source: ADP, Automatic Data Processing

ADP National Employment Report: Private Sector Employment Increased by 246,000 Jobs in January

Private-sector employment increased by 246,000 from December to January, on a seasonally adjusted basis.

ROSELAND, N.J. – February 1, 2017 – Private sector employment increased by 246,000 jobs from December 2016 to January 2017 according to the January ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

Also see: https://www.adpemploymentreport.com/2017/January/NER/docs/ADP-NATIONAL-EMPLOYMENT-REPORT-January2017-Final-Press-Release.pdf

Read more: https://www.adpemploymentreport.com/2017/January/NER/NER-January-2017.aspx

[div class"excerpt"]Feb 1, 2017 @ 09:12 AM 458 views

Brace For US Wage Rises - ADP's Private Payroll Hiring Grew 246,000 In January


Tim Worstall, Contributor

It's a standard mantra of economists that the best thing for the workers' wages is full employment. Thus, given that we'd all like to see the workers' wages rising we should welcome this news. The ADP numbers for private sector hiring in January are out and they show 246,000 more people gaining employment in the month. This is significantly above estimates and also well above the numbers for previous months. So we're getting to where we would like to be--the more people are employed then the higher the upward pressure will be upon wages and thus the happier we all should be*:

Private-sector hiring picked up in January, as employers added 246,000 jobs, well above expectations, ADP reported Wednesday.

Economists polled by Econoday had expected a January gain of 168,000, compared with an originally reported increase of 153,000 in December.

Now, of course, we should not place too much weight on just the one month's numbers. Especially as this set is not seasonally adjusted. This is a straight count, not something that we should compare to this time last year in order to remove seasonal influences. But equally we ought to take the number seriously--for ADP processes payroll for people and the heart of their method is to look at how many more payrolls they are processing (the estimations come when extending the rate of those they service out to the economy in general**).

Private payrolls climbed by 246,000 (forecast was 168,000) after a revised 151,000 gain in December
Goods-producing industries, which include manufacturers and builders, increased headcounts by 46,000, the most in two years, after a rise of 4,000
Service providers boosted payrolls by 201,000 following a 147,000 gain


Well, how to you tempt those workers away and into your own factory? Higher wages perhaps, maybe better conditions, a higher contribution to the pension plan, possibly lower deductibles on the company health insurance.....you've got to make those new workers better off to get them. And, clearly, you've also got to raise the wages of your current workers at the same time. Both because they'll not sit still if you don't and also, obviously, because the other employers out there are eyeing up your workers hungrily.

And this is why we like tight labour markets so much, why full employment is the workers' best friend. Simply because this is what drives up wages. So, more of this please, lots more of it.

* http://www.marketwatch.com/story/private-sector-adds-246000-jobs-in-january-adp-2017-02-01

** https://www.bloomberg.com/news/articles/2017-02-01/adp-says-companies-in-u-s-added-246-000-employees-in-january

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