London Daily

Focus on the big picture.
Wednesday, Jul 16, 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

0:00
0:00
Close
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
×