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Organization: Anticipates that "Mini Nonfarm" growth will slow down and will be significantly below January nonfarm payroll number

2 hours ago

Feb 4: Dave Sloan, Senior Economist at Continuum Economics North America, says the January ADP employment report is expected to show 30,000 new jobs added—down from 41,000 in December. The ADP report is seen lagging notably behind January’s nonfarm payroll data, however: nonfarm employment is projected to rise by 85,000. While December’s ADP aligned broadly with nonfarm figures, recent ADP data has consistently underperformed, averaging 22,000 fewer jobs than nonfarm over the past six months. Though the gap narrowed compared to September and November, it’s expected to widen to 50,000 in January. January’s nonfarm payrolls are seen rebounding from recent softness in retail, a factor that has a relatively small impact on ADP data. For the ADP sector breakdown, January is expected to bring modest improvement in goods-producing industries (notably construction) but slower job growth in services. The trend of ADP underperforming nonfarm is most pronounced in services, with sharp disparities in education and healthcare data.
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