Companies are adding jobs, but the unemployment rate isn’t expected to reflect it, according to Bloomberg.

U.S. companies increased employment by 187,000 workers in January, according to figures released by Automatic Data Processing Inc. (ADP) Employer Services.

That follows a 247,000 gain in December.

A U.S. Department of Labor report on Friday is forecast to show that companies added 140,000 jobs in January, while the unemployment rate will rise to 9.5 percent, up from 9.4 percent.

“The labor market remains on a slow healing path,” said Neil Dutta, economist at Bank of America Merrill Lynch Global Research, in an interview with Bloomberg. “The labor market is recovering, but that recovery is not strong enough to bring down unemployment in a meaningful way.”

A Challenger, Gray & Christmas report showed that employers cut 38,519 jobs in January, which is the lowest number for any January since record-keeping began in 1993. It was 46 percent lower than the number of job cuts in January 2010.

The ADP report predicts an increase of 21,000 workers in goods-producing industries, which includes manufacturing and construction. It predicts an addition of 166,000 workers in service industries.

Iowa’s unemployment rate dropped to 6.3 percent in December from 6.6 percent in November.