Companies unexpectedly cut 301,000 jobs in January as omicron slams labor market, ADP says

Companies cut jobs in January for the first time in more than a year as the spread of the Covid omicron variant appeared to hit hiring, payroll processing firm ADP reported Wednesday.

The pandemic-sensitive leisure and hospitality industry was responsible for more than half of the decline, as companies reported a drop of 154,000. Trade, transportation and utilities cut 62,000 while the other services category declined by 23,000. Service-providing industries were responsible for 274,000 of the job losses, with goods producers falling by 27,000.

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