Payroll processor ADP reported on Wednesday that job growth in the U.S. private sector slowed sharply in January, coming in well below economists’ expectations.
According to the report, private employers added just 22,000 jobs last month, following a gain of 37,000 in December, a figure that was revised down from earlier estimates.
Economists had been forecasting a stronger increase of about 45,000 jobs, compared with the 41,000 positions initially reported for the previous month.
The limited overall growth was largely driven by hiring in the education and health services sector, which accounted for a net increase of 74,000 jobs, masking weakness across other areas of the labor market.