Inside the ADP Report - What was behind the surge in January hiring:
Bottom Line: January's ADP private sector jobs report provide the best job growth we've had in a given month in over a year. Despite ending 2016 with a weak 1.9% growth economy - we produced new jobs in January at a rate that's suggestive of a much stronger economy. The obvious is the obvious. Small business confidence was the highest in January that we've had since 2006 and overall business confidence was the highest since prior to the Great Recession. So simply the expectation that the Trump administration would provide a more favorable business environment - led to a boost in business confidence, which led to a big boost in hiring. This gets back to the fastest way to improve. To simply stop doing the bad stuff. So let's get to the numbers...
246,000 total jobs added (up from 153,000)
Small businesses: +62,000 (up from 18,000)
Midsize businesses: +102,000 (up from 71,000)
Large companies: +83,000 (up from 63,000)
So we see across the board strength being driven strongest by the smallest companies which is consistent with the surge in small business confidence and is endemic of what happens in a healthier economy (when about 2/3rd's of new jobs are added by smaller companies).
The Trump administration is just getting started. Let's hope a return to a good US economy is next - the first signs are encouraging.