Us companies added more jobs in January than expected, suggesting that the labour market is likely to improve as cases of COVID-19 infection begin to subside.

The number of employees increased by 174000 in the month, according to data released by ADP Research Institute on Wednesday. Economists expect a median increase of 70,000. The previous month, the number of people was reduced by 78000.

The data suggest that the labour market may start to pick up again after a decline in employment in December. Corporate hiring is likely to get more incentive as vaccination speeds up and states such as New York and California lift some commercial restrictions on epidemic prevention.

The government will release its monthly jobs report on Friday, and the market expects private sector payrolls to rise by 105000 in January. In December, the number of people decreased by 95000.

ADP data show that job growth is dominated by the service sector, with an increase of 156000 people. Led by the construction industry, the employment of commodity producers increased by 19000.