ADP report: Jobs up by 106K in January; annual pay up 7.3%

January saw the nation’s employment level rise, according to the monthly ADP National Employment Report released Wednesday, as the private sector added 106,000 jobs. Employment was soft during the Jan. 12 reference week, as the U.S. was hit with extreme weather. California was coping with record floods and back-to-back storms delivered ice and snow to the central and eastern U.S.

The ADP report also showed annual pay was up 7.3% year-over-year.

“In January, we saw the impact of weather-related disruptions on employment during our reference week,” Nela Richardson, chief economist, ADP, said. “Hiring was stronger during other weeks of the month, in line with the strength we saw late last year.”

Looking at where the jobs were added, the service-providing sector added 109,000 jobs, while leisure/hospitality added 95,000 positions.

In terms of company size, hiring was strong across the larger establishments — adding 128,000 spots. Medium firms increased by 64,000 positions and small establishments lost 75,000 jobs.

January’s pay growth remained steady from the prior data set, as it held at 7.3% for the second month, with most industries little changed. One outlier was the information sector, where pay growth decelerated from 7% to 6.6%.

For job changers, pay growth accelerated to 15.4%.