by Calculated Risk on 2/02/2022 08:19:00 AM
“The labor market recovery took a step back at the start of 2022 due to the effect of the Omicron variant and its significant, though likely temporary, impact to job growth,” said Nela Richardson, chief economist, ADP. “The majority of industry sectors experienced job loss, marking the most recent decline since December 2020. Leisure and hospitality saw the largest setback after substantial gains in fourth quarter 2021, while small businesses were hit hardest by losses, erasing most of the job gains made in December 2021.”
This was well below the consensus forecast of 208,000 for this report.
The BLS report will be released Friday, and the consensus is for 155 thousand non-farm payroll jobs added in January. The ADP report has not been very useful in predicting the BLS report, but this suggests weakness in the January BLS report.