US private-sector jobs plummeted in January as a new wave of coronavirus infections due to the micron transmissible mutation caused severe disruption to economic activity, according to data released by the ADP.
In particular, jobs fell by 301,000 last month, disproving analysts’ estimates in a Reuters poll that the economy expected to add another 207,000 jobs.
This was the first decline in 13 months and the biggest since April 2020, when the US economy lost nearly 20 million jobs in the first economic lockdown to deal with the first wave of the pandemic.
At the same time, December data revised downwards and showed that the private sector added 776,000 positions instead of the 807,000 originally announced.
“The labor market recovery has taken a step back in early 2022, due to the micron mutation and the significant, albeit temporary, impact it has had on job creation,” said ADP chief economist Nela Richardson.
Source: Capital
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