Connect with us

Accounting

Private sector added 183K jobs in January

Published

on

Private sector employers added 183,000 jobs in January, payroll giant ADP reported Wednesday, as annual pay rose 4.7% year over year.

The service-providing sector accounted for the bulk of the job gains, at 190,000 jobs, including 14,000 jobs added in professional and business services such as accounting and tax preparation, along with 13,000 in financial activities such as banking, and 54,000 in the leisure and hospitality sector. However, that was offset by losses in the goods-producing sector, which lost a total of 6,000 jobs, with a loss of 13,000 jobs in manufacturing partially offset by gains of 4,000 jobs in the natural resources and mining sector and 3,000 jobs in construction.

The decision by Waffle House to raise the prices on its menu by 50 cents an egg indicates the impact of inflation and consumer demand in the leisure and hospitality sector.

“A consumer obviously is disappointed about the price of eggs, but is not slowing spending when it comes to entertainment or restaurants, maybe not getting an omelet, but going for the waffles instead, but still showing up when it comes to this sector,” said ADP chief economist Nela Richardson during a conference call Wednesday with reporters. “Where we’ve seen a little bit of a slowdown over the last few months is more in business services. Professional and business services at 14,000 was not a highlight or a strong point since 2024, and a little bit of a slowdown in financial activities as well. We’re going to be really watchful to see the places of strength as we move through the year. As long as the consumer, though, is in good shape, I think we’re going to see hiring follow the consumer.” 

Small businesses added 39,000 jobs in January, including 23,000 in businesses with between one and 19 employees and 16,000 in businesses with between 20 and 49 employees. Medium-size establishments added 92,000 jobs, including 53,000 in companies with between 50 and 249 employees and 39,000 in organizations with between 250 and 499 employees. Large establishments with 500 employees or more added 69,000 jobs in January.

Year-over-year pay growth was 4.7% for people who stayed in their jobs, while pay growth for those who changed jobs was 6.8%. In professional and business services, the rate of pay growth was 4.6% for job stayers.

“There’s still a premium to changing jobs, but that premium has also been steady,” said Richardson. “It’s about 2.1% right now. We’ve seen it be as high as 7 or 9%. There isn’t as much benefit from job switching as there’s been in the past.”

She noted that the U.S. Bureau of Labor Statistics’ latest JOLTS report, or Job Openings and Labor Turnover Survey, indicated fewer employees are quitting their jobs. 

“Quit rates are lower than they’ve been even before the pandemic,” said Richardson. “We have a super low quit rate now compared to where it was during the Great Resignation.”

ADP also dug into the numbers for Los Angeles in the wake of the devastating wildfires last month. Richardson noted the region accounts for 3% of the U.S. workforce and 25% of California employment. ADP found a lower amount of hours for the three-week time horizon around the fires compared to a year ago. In the week of January 5, there was a 5% to 10% drop in paychecks in the areas most affected by the fires, but since three weeks ago, the paychecks have mostly recovered. 

“What’s interesting is where we saw the drop in labor market activity,” said Richardson. “It was really in manufacturing for the most part. We actually saw a boost in hours in leisure and hospitality. That makes sense if you think about the amount of people who were displaced during the fires, staying at hotels, maybe ordering more takeout. During that time, we saw a boost in hiring in that sector for the affected region.”

Continue Reading

Accounting

Let a non-CPA do it!

Published

on

With accounting talent so hard to find, Wiss’ Paul Peterson shares how his firm has cultivated non-accountants and non-CPAs to fill the gap.

Continue Reading

Accounting

Senate Dems probe IRS chief nominee Billy Long’s campaign donations

Published

on

Billy Long speaking at a Donald Trump campaign event
Billy Long speaking at a Donald Trump campaign event

Al Drago/Bloomberg

The week before confirmation hearings for President Donald Trump’s nominee for commissioner of the Internal Revenue Service, former Missouri Congressman Billy Long, Democrats in the Senate are asking questions about the timing of campaign donations he received immediately after his nomination.

In a letter sent last Thursday to seven different companies — including an accounting firm, a tax advisory services firm, and a financial services provider — Democratic Senators Elizabeth Warren, D-Massachusetts, Ron Wyden, D-Oregon, and Sheldon Whitehouse, D-Rhode Island, questioned donations that the companies and some of their employees made to Long in the month and a half after his nomination in early December of 2024.

Between Dec. 4, 2024, and the end of January 2025, the letters said, Long’s unsuccessful 2022 campaign for Senate received $165,000 in donations — after nearly two years without receiving any — and his leadership PAC received an additional $45,000.

The donations allowed Long to repay himself the $130,000 balance of a $250,000 loan he had personally made to his campaign back in 2022.

(Read more:DOGE downsizing, IRS commissioner switch complicate tax season.“)

The senators’ letters described the donations as “a highly unusual and almost immediate windfall,” and characterized many of the donors as being “involved in an allegedly fraudulent tax credit scheme.”

“The overlap between potential targets of IRS investigations and the list of recent donors heightens the potential for conflicts of interest and suggests that contributors to Mr. Long’s campaign may be seeking his help to undermine or avoid IRS scrutiny,” the letters said; adding, “This brazen attempt to curry favor with Mr. Long is not only unethical — it may also be illegal.”

The senators then warned, “There appears to be no legitimate rationale for these contributions to a long-defunct campaign other than to purchase Mr. Long’s goodwill should he be confirmed as the IRS commissioner,” before appending a list of approximately a dozen questions for the donors to answer.

The donations were originally discovered in early April by investigative news outlet The Lever, which the senators noted in their letters.

After Long left Congress in 2023, he worked for a tax consulting firm, including promoting the COVID-related Employee Retention Credit. In early January, Sen. Warren sent a letter to Long questioning his tax credentials and promotion of the ERC.

The IRS has run is now on its fifth acting or regular commissioner since President Trump announced his intention to nominate Long; a number of the commissioners resigned or were removed over policy differences with the administration and its Department of Government Efficiency.

Long’s confirmation hearing before the Senate Finance Committee is scheduled for this Tuesday, May 20.

Continue Reading

Accounting

Trump berates Republicans to ‘Stop talking,’ pass tax cuts

Published

on

Donald Trump listens to a question while speaking to members of the media before boarding Marine One on the South Lawn of the White House in Washington, D.C.
Donald Trump

Al Drago/Bloomberg

President Donald Trump called on members of his party to unite behind his economic agenda in Congress, putting pressure on factions of lawmakers who are calling for last-minute changes to the legislation to drop their demands.

“We don’t need ‘GRANDSTANDERS’ in the Republican Party,” Trump said in a social media post on Friday. “STOP TALKING, AND GET IT DONE! It is time to fix the MESS that Biden and the Democrats gave us. Thank you for your attention to this matter!”

Trump sent the post from Air Force One after departing the Middle East as the House Budget Committee was meeting to approve the legislation, one of the final steps before the bill can move to the House floor for a vote.

House Speaker Mike Johnson has set a goal to pass the bill next week before the House recesses for its Memorial Day break.

However, the the bill failed the initial committee vote — typically a routine, procedural step — with members of the party still sparring over the scope of the cuts to Medicaid benefits and how much to raise the limit on the state and local tax deduction.

Narrow majorities in the House mean that a small group of Republicans can block the bill. Factions pushing for steeper Medicaid cuts and for an increase to the SALT write-off have both threatened to defeat the bill unless their demands are met.

“No one group gets to decide all this stuff in either direction,” Representative Chip Roy, an ultraconservative Texas Republican advocating for bigger spending cuts, said in a brief interview on Friday. “There are key issues that we think have this budget falling short.”

Trump’s social media muscle and calls to lawmakers have previously been crucial to advancing his priorities and come as competing constituencies have threatened to tank the measure.

But shortly after Trump’s Friday post, Roy and fellow hardliner Ralph Norman of South Carolina appeared unmoved — at least for the moment. Both men urged continued negotiations and significant changes to the bill that could in turn jeopardize support among moderates.

“I’m a hard no until we get this ironed out,” Norman said. “I think we can. We’ve made progress but it just takes time”

Continue Reading

Trending