* U.S. private sector adds 187,000 jobs in Jan - ADP
* December job gains revised lower to 247,000 - ADP
* Planned U.S. layoffs rise to 38,519 in Jan-Challenger (Recasts; adds details, quote; updates market movements)
By Caroline Valetkevitch
NEW YORK, Feb 2 (Reuters) - U.S. private employers added more jobs than expected in January, the 12th consecutive month that companies took on staff, adding to hopes that the weak American labor market is slowly recovering.
Other data on Wednesday showed that even though planned layoffs at U.S. firms in January rose 20 percent from December, the tally was the lowest for a January since at least 1993.
The latest jobs figures come ahead of the government's more comprehensive January labor market report on Friday, which includes both public and private sector employment.
The private sector added 187,000 jobs in January, compared with a downwardly revised 247,000 jobs in December, a report by payrolls processor ADP Employer Services showed.
"Bottom line, even with the December downward revision, the (ADP) two-month average is a solid 217,000 and certainly a positive for economic activity," said Peter Boockvar, equity strategist at Miller Tabak + Co in New York.
Most indicators have suggested the U.S. economy is picking up steam, but job creation has been slow since the end of the recession in June 2009. Analysts have closely watched data on private payrolls, which tend to represent the bulk of new job gains.
But ADP figures for December -- both initial and revised -- turned out to be much stronger than the government report showed, adding to doubts about the reliability of ADP as a predictor of payrolls.
Markets showed little reaction to the latest data, and some analysts said investors could be wary of ADP after December's numbers.
Although ADP has not proven to be a strong predictor of government payrolls data, it might still be a good indicator of the labor market recovery, given that other surveys also show job gains are getting stronger.
An employment component in Tuesday's Institute for Supply Management's manufacturing survey reached its highest level since April 1973.
The January ADP figure was above economists' expectations for gains of 145,000 in a Reuters poll.
In the markets, investors were more focused on the civil unrest in Egypt. The Standard & Poor's 500 <.SPX> index edged lower, pulling back after Tuesday's strong advance and Egypt President Hosni Mubarak's announcement of his decision to step down at the end of his term.
U.S. Treasury debt
INSTANT VIEW-US Jan private sector payrolls up 187,000
[ID:nN02187201]
Graphic - ADP vs US Labor Dept
http://r.reuters.com/raw77r
Graphic - US MBA mortgages rise
http://r.reuters.com/daw77r
Friday's Labor Department report is expected to show a rise in overall nonfarm payrolls of 145,000 in January, based on a Reuters poll of analysts, and a 155,000 rise in private payrolls. [ECI/US]
Analysts have said severe snow storms that hit the country during the survey period could result in a much lower figure. For details, see [ID:nN0187135]
Macroeconomic Advisers LLC Chairman Joel Prakken said the ADP data was not significantly affected by the weather and he did not see an impact on Friday's payrolls data either.
Macroeconomic Advisers develops the report with ADP.
"When I look at these two months together (December and January) ... I see a clear pattern of strengthening and acceleration here, that I think is very encouraging," Prakken told reporters.
The Federal Reserve has had a cautious outlook on the economy, keeping interest rates near zero and last year implementing a $600 billion bond-buying program to support the recovery as the nation's unemployment rate remains stubbornly high at 9.4 percent.
Fed Chairman Ben Bernanke is scheduled to speak on the economic outlook on Thursday before a National Press Club luncheon.
Global outplacement company Challenger, Gray & Christmas said January layoff announcements rose to 38,519, up 20 percent from December.
Noting that January was typically a month of large job cuts, it said the slowdown in job cuts that began in the latter half of 2010 appeared to be continuing.
In a sign that employers are reluctant to step up full-time
hiring, Manpower Inc