US companies seem to be picking up, as 175,000 jobs are added in January

Companies in the US seem to be recovering from the COVID-19 impact. This can be seen as about 175,000 new jobs have been added in the first month of the year. 

175,000 new jobs created in January 

The January results signals of  US firms seem to be positive after the damage done by the COVID-19 pandemic on businesses across the world. Various restrictions have put much business out, but it seems the country is on its way back to the pre-pandemic era. 

'' Labour market in the US has shown a mild recovery amidst the pandemic, the signs are promising '' Ahu Yildirima, VP, ADP Research Institute states.

According to the latest report by ADP, which was done in collaboration with Moody Analytics, most sectors aside from leisure and entertainment are picking up. Looking at the growth by industry, health and education seem to be the biggest winners with another 55,000 employment added. 

However, the communication sector lost about 2,000 positions, making it the biggest loser. Furthermore, using size statistics, small businesses took in about 50.000 jobs, while mid-size companies gained about 85, 000 new employees. Big multinationals added about 38,000 positions. 

Big firms also affected as much as small and medium firms 

'' Job losses were prominent in small and mid-size businesses, however, it has now affected large organizations '' Yildirmaz stated. 

However, signs show that it will take more time for the US economy to recover fully, as about 130,000 jobs were lost in December. Signs in retailing are not positive as sales declined for the second month and spending by customers fell drastically despite stimulus money given by the government. 

Many American economists are however optimistic that the nation will recover faster than expected especially if the current package suggested by the new Joe Biden administration is approved by both Republicans and senate lawmakers.

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