Employment activity in the non-manufacturing sector grew substantially in January, as ISM’s Non-Manufacturing Employment Index registered 57.4 percent (see chart above, data here). This reflects an increase of 7.6 percentage points when compared to the seasonally adjusted 49.8 percent registered in December. Nine industries reported increased employment, five industries reported decreased employment, and four industries reported unchanged employment compared to December. Comments from respondents include: “Ramping up to meet increase in revenues due to expansion and acquisitions” and “More job awards.”

The industries reporting an increase in employment in January — listed in order — are: Information; Professional, Scientific & Technical Services; Retail Trade; Construction; Transportation & Warehousing; Accommodation & Food Services; Wholesale Trade; Finance & Insurance; and Other Services. The industries reporting a reduction in employment in January are: Arts, Entertainment & Recreation; Public Administration; Educational Services; Mining; and Health Care & Social Assistance.”

MP: The 57.4% ISM service employment index in January was the fourth highest reading in the history of that series back to January 1998, and the highest level in almost six years, since 57.6% in February 2006.

In other positive labor market news this week:

1. Monster reported yesterday that its index of online job demand increased by 9% in January on an annual basis, with all metro areas reporting increases since January 2011.

2. The Conference Board reported on Wednesday that online advertised job vacancies increased by 61,300 in January, following a 126,000 increase in December.  Compared to a year earlier, total ads have increased by 5% and new ads by 14%.

HT to Robert Kuehl for the ISM report.