Nonfarm private employment decreased 22,000 from December 2009 to January 2010 on a seasonally adjusted basis, according to the ADP National Employment Report®. The estimated change of employment from November to December 2009 was revised by 23,000, from a decline of 84,000 to a decline of 61,000. The January employment decline was the smallest since employment began falling in February of 2008.
January’s ADP Report estimates nonfarm private employment in the service-providing sector increased by 38,000, the second consecutive monthly increase. However, this employment growth was not enough to offset continued losses in the goods-producing sector. Employment in the goods-producing sector declined 60,000, with employment in the manufacturing sector dropping 25,000. The employment decline in the manufacturing sector was the lowest since January of 2008.
Here is a chart from the report:
Manufacturing/goods producing is still taking a big hit -- down 60,000. However, service employment grew for the second month. Also note that it's the small and medium service firms hiring rather than the large firms. The following charts shows the service sector employment pace in more detail:
And in an interesting, "I wonder why" vein:
Medium size firms are adding to payrolls.