ADP National Employment Report Shows Service Jobs Growth

By Jessica Davis  |  Print this article Print

While overall non-farm private sector jobs decreased in January, albeit by a much smaller margin, employment in the service sector climbed for the second consecutive month, according to the most recent ADP National Employment Report.

Non-farm private employment declined by 22,000 jobs in January 2010 compared with December 2009, but according to HR outsourcing firm Automatic Data Processing (ADP), that figure actually represented some good news.

"The January employment decline was the smallest since employment began falling in February 2008," said Joel Prakken, chairman of Macroeconomic Advisors, in a statement. Macroeconomic Advisors helps create the monthly ADP National Employment Report together with ADP. "Growth of overall private employment is on the verge of turning positive."

And in the services sector the news was even brighter, as jobs grew by 38,000, registering their second consecutive monthly increase. Jobs in the goods-producing sector did not fare as well, however, with a decline of 60,000, and employment in the manufacturing sector dropping by 25,000.

"The employment decline in the manufacturing sector was the lowest since January of 2008," Prakken noted.

Large businesses—those with 500 or more workers—saw employment levels decline by 19,000, and small businesses—those with 50 or fewer workers—saw a decline of 12,000 jobs. But medium-size businesses (those with between 50 and 499 employees) saw an increase of 9,000 jobs in January, representing the first increase in employment since January 2008.

Breaking out the performance of small business employment specifically, ADP noted that jobs for small business in the goods-producing sector declined by 28,000, but in the service-producing sector jobs increased by 16,000.

Small business’s overall decline of 12,000 jobs in January marked the smallest decline since July 2008, according to Prakken.

Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com