The ADP employment report issued Wednesday revealed that the private-sector firms in the U. S. eliminated 22,000 jobs in January, the 24th decline in a row as the labor market continues its sluggish path toward recovery.

The Institute for Supply Management's index of nonmanufacturing activity edged up to 50.5 in January from 49.8. Anything over 50—a level the index has been fledgling with since 6 months now–represents expansion.

Large businesses are reported to have sacked 19,000 employees, small businesses cut 12,000, and medium-sized businesses added 9,000, the first increase since January 2008.

However, private-sector witnesses its job losses to have slowed once again last month, cited the report offering a preview of government data due Friday.

"The most important take-away is that job conditions overall are improving," David Resler, a Nomura Global Economics analyst, said in a note to clients. "Job losses in the manufacturing sector in particular have been drifting steadily lower."

On Monday, the ISM revealed that the manufacturing sector witnessed its largest activity gain in over five years in January, amidst emerging signs of rising factory employment.

The January unemployment rate is estimated to rise to 10.1% from 10.0%. Friday's report will include benchmark revisions to the establishment survey which covers the nonfarm payroll data.