Private Payroll Growth Slowed to 106,000 New Jobs Last Month

Also, the recent wave of layoffs has workers rethinking full-time work and flexibility in the workplace.

February 02, 2023

ALEXANDRIA, Va.—The private sector added a mere 106,000 new jobs in January, down from an upwardly revised 253,000 in December, according to payroll processing company ADP. Economists were expecting an increase of 190,000 jobs, reports CNBC.

The hospitality industry added the majority of the positions. Bars, restaurants, hotels and other similar businesses added 95,000 jobs. Financial activities added 30,000 jobs; manufacturing added 23,000 jobs, while education and health services added 12,000 positions in January.

Industries that lost jobs included transportation and utilities (41,000), construction (24,000) and natural resources and mining (2,000).

ADP said the job market was soft due extreme weather, including record flooding in California and winter storms in the central and eastern United States.

“In January, we saw the impact of weather-related disruptions on employment during our reference week. Hiring was stronger during other weeks of the month, in line with the strength we saw late last year,” Nela Richardson, chief economist, ADP.

Growth in pay was little changed month over month, but pay was up 7.3% from one year ago.

Small businesses (those with fewer than 50 employees) lost the most jobs in January—down 75,000. Business with 500 or more workers added the most workers (128,000). Mid-sized companies (50-499 employees) added 64,000 jobs.

Fast Company reports that although it seems as if the tech industry and other major corporations are laying off workers left and right, the tech industry added 17,600 jobs in December, the 25th straight month of net employment growth. However, these layoffs are altering the way Americans are viewing full-time employment and flexibility in the workplace.

Freelance platform A.Team Network surveyed 500 knowledge workers and found that 89% of those surveyed would like to have more control and flexibility over their work schedule than traditional full-time employment can offer, while 74% said that the recent waves of layoffs have made freelance work more attractive than before.

Sixty-six percent of those surveyed said that the recent waves of layoffs have made them lose trust in the stability and security of full-time employment, while 62% said that the recent waves of layoffs have made them feel less secure committing to one employer.

Convenience stores are recognizing workers’ desire for flexibility and autonomy and have found creative solutions for attracting and retaining employees. Learn more in the NACS Magazine article “Shifting to Flexibility” in the upcoming March issue.

Economic conditions have had a huge impact on the convenience retail industry in the past two years. At this year’s NACS State of the Industry Summit, John Benson of AlixPartners LLP will share key insights during the “U.S. Economic Outlook for 2023 and Beyond” session. Registration is open.