US jobs bounce back in January despite Covid-19 case surge
Hiring by private employers in the US bounced back in January despite a continued rise in Covid-19 infections, according to new data.
Private payrolls increased by 174,000 jobs last month, according to data from ADP. Previously released figures for December were also revised to show jobs fell by 78,000 rather than 123,000.
The numbers are well ahead of the 49,000 addition forecast in a Reuters poll of economists.
The upbeat data comes despite figures from John Hopkins University showing that January was the worth month of the coronavirus pandemic since it broke out in the US.
However, some restrictions have begun to ease, allowing businesses to make a cautious recovery.
Job growth is expected to rise further in the spring as almost $900bn (£660bn) in pandemic relief kicks in. President Joe Biden has pledged to spend $1.9bn getting the economy back on track.
The ADP figures come ahead of official numbers due to be released on Friday.
This is expected to show non-farm payrolls increased by 50,000 jobs last month after declining b6 140,000 in December — the first decline in employment in eight months — according to a Reuters poll.
The US economy has recouped 12.5m of the 22.5m jobs lost in March and April at the height of the first wave of the pandemic.
However, the Congressional Budget Office this week warned that employment would not return to pre-pandemic levels before 2024.