Sunday, April 2, 2023

USA: Private sector creates 106,000 jobs despite cold weather

The private sector in the United States created 106,000 jobs in January despite flooding in California and cold storms in the center and east of the country, a study by the ADP Research Institute in collaboration with Stanford Lab shows.

“We have seen the impact of extreme weather events on employment,” said Nella Richardson, chief economist at ADP. “Recruiting has been more intense in other weeks affected by weather changes, which is in line with the trend seen late last year,” he added. In this way, 127,035,000 employees are employed in the private sector in the world’s leading economy.

Overall for the month, it was companies with 50-249 employees and large companies with more than 500 that created 99,000 and 128,000 jobs, respectively. In contrast, small (1-49) and medium-sized (250-499) businesses lost 75,000 and 35,000 jobs each.

By sectors, the main hiring was in leisure and hospitality (+95,000), finance (+30,000) and industry (+23,000), while layoffs occurred in commerce, transport and services (-41,000), construction (-24,000) and Sectors of natural resources and mining (-2,000).

Furthermore, the report mentions that wages have increased by an average of 7.3% compared to a year ago. In this sense, it emerged last Friday that the personal consumption expenditure price index, the figure chosen by the Federal Reserve (Fed) to monitor inflation, rose 5% year-on-year in December 2022.

The underlying index, which excludes food and energy prices from its calculations due to their greater volatility, closed the last month of last year with a gain of 4.4%, three-tenths less than in November.

Nation World News Desk
Nation World News Desk
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