By Mike Sunnucks | Rose Law Group Reporter
Private employers cut 301,000 jobs in January — the biggest decrease in U.S. employment levels since April 2020 and the start of the coronavirus pandemic, according to payroll firm ADP.
Economists had expected a 200,000 gain in U.S. private sector jobs for January 2022. Instead, the private sector slashed jobs for the first time since December 2020, according to ADP.
Small businesses cut 144,000 jobs and the leisure and hospitality industry sliced 154,000 jobs with the Omicron variant, inflation and supply chain problems challenging the economy.
The drop also comes as employers across the economy struggle to hire and retain workers especially for lower paying jobs without benefits and front-end positions that offer more potential exposures to the virus.
“The labor market recovery took a step back at the start of 2022 due to the effect of the Omicron variant and its significant, though likely temporary, impact to job growth,” said Nela Richardson, chief economist, ADP. “The majority of industry sectors experienced job loss, marking the most recent decline since December 2020. Leisure and hospitality saw the largest setback after substantial gains in fourth quarter 2021, while small businesses were hit hardest by losses, erasing most of the job gains made in December 2021.
