This was not quite the numbers that folks in Washington may have hoped to hear to start 2022. Yes, according to a new report, America’s private sector lost 301,000 jobs to begin 2022. The report comes from the ADP Employment Report that released the dubious numbers this week. This, along with January’s Omicron surge across the country, is another rough point to begin 2022.
Because the report comes in addition to the Omicron variant running rampant through much of the country in January, it is fair to wonder how much of that element contributed to the poor jobs report. According to some economists at Goldman Sachs, “The details of the ADP employment report indicate a large and likely temporary drag from Omicron on January employment.
Another thing to note about the way the ADP conducts their own report is that they include everyone on a company’s payroll. This includes even if they were out sick or whatnot during the month of January. Still, the number was not what most economists had anticipated to kick off the new year. In fact, this was the first negative ADP report since December 2020, as experts had reportedly expected the report to show a positive number of 207,000 jobs added.
Was This a Blip?
ADP chief economist Nela Richardson told reporters, via CNN, “There is good evidence to suggest that January represents a speed bump, not a stop.” For instance, way back in December 2021, the ADP Report showed 807,000 jobs were added. This was before the latest variant began really disrupting folks all across the country.
In January, due to Omicron, America saw school closings, child care issues, labor shortages, and even business closures. It was a tumultuous month that economists did not anticipate, as seen by the expected positive number for January 2021. Richardson’s confidence in reporters indicates that the negative report was not a trend that they expected to continue into February.
Americans Quit Their Jobs In Mass Numbers in 2021
Still, one of the major problems still facing businesses in 2022 is worker shortage. Especially in the hospitality sector. As companies try to both hire new workers and fight rising inflation, there is still lots of uncertainty heading into 2022.
For instance, 47 million Americans quit their job in total in 2021. Senior economist at Emsi Burning Glass Rucha Vankudre told CNBC, “All of this is uncharted territory.” She continued, “Employers are doing what they can at this point. What else can they do? We’ll have to see. They’ve done the things we’ve expected them to do at increasing rates. But what’s next?”
So, while the January private-sector numbers might indeed be a “speed bump” in 2022. More questions remain for businesses all over the country for a multitude of reasons.