Private sector job growth slowed by more than expected in the month of January, according to a report released by payroll processor ADP on Wednesday.
ADP said private sector employment climbed by 106,000 jobs in January after surging by an upwardly revised 253,000 jobs in December.
Economists had expected private sector employment to increase by 178,000 jobs compared to the addition of 235,000 jobs originally reported for the previous month.
“In January, we saw the impact of weather-related disruptions on employment during our reference week,” said ADP chief economist Nela Richardson. “Hiring was stronger during other weeks of the month, in line with the strength we saw late last year.”
The report said employment in the service-providing sector rose by 109,000 jobs amid a notable increase in employment in the leisure/hospitality industry.
Meanwhile, employment in the good-producing sector edged down by 3,000 jobs, with a decrease in employment in the construction industry offsetting growth in employment in the manufacturing industry.
ADP also said employment at large businesses jumped by 128,000 jobs and employment at midsized businesses increased by 64,000 jobs, while employment at small businesses fell by 75,000 jobs.
On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of January.
Economists currently expected employment to increase by 185,000 jobs in January after jumping by 223,000 jobs in December, while the unemployment rate is expected to inch up to 3.6 percent from 3.5 percent.
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