ADP: Private employer hiring near 200,000 in January

Businesses started off 2013 with a bang. The new year arrived with optimistic economic expectations, and if private employer hiring is a measure of potential economic strides in 2013, the country could be in for a big year. The first month of 2013 was a rousing success for U.S. employment; and as companies look to create more jobs this year, recruiting agencies can help them find the best talent.

Small businesses lead the way
Private sector employment rose by 192,000 jobs in January, according to the most recent ADP National Employment Report. January additions were well above previous expectations of between 155,000 and 160,000 new jobs. January’s numbers also beat the revised count for December, down to 185,000 jobs from a previously announced 215,000.

The employment report is based off ADP’s actual payroll data and measures the change in overall nonfarm private employment. The ADP report comes just days before the U.S. Bureau of Labor Statistics’ first employment situation report for 2013.

The growth in private employment was largely due to increases in small business hiring. Small businesses added 115,000 jobs in January, 58,000 of which occurred at firms with one to 19 employees and 57,000 of which were created at organizations with 20 to 49 employees.

Medium-sized business fared well in January, with 79,000 new job at businesses with 50 to 499 employees. Employment at large firms slipped a bit, however, resulting in a loss of 2,000 positions. Companies with 500 to 999 employees added 7,000 jobs in January, but a drop in employment of 9,000 jobs at firms with 1,000 or more employees offset the gains.

Professional services up, manufacturing slightly down
By sector, goods producing contributed 15,000 new jobs to the January total, while service providing created 177,000 positions. The gains made in the latter led to a big rise in professional and business service employment, which was up 40,000 jobs. Trade, transportation and utilities increased workforce numbers by 33,000 and construction added 15,000 jobs. Manufacturing, however, shed 3,000 positions.

Despite the temporary losses in manufacturing jobs, economic indicators across the nation point to a sustained recovery in production, making manufacturing recruiters a priceless resource for companies looking to court valuable talent.