US Private Sector Adds 202,000 Jobs in December, Largest Gain Since April: ADP
The US added 202,000 nonfarm, private-sector jobs in December from November, according to the ADP National Employment Report released today. This is the largest gain since April 2019, which saw a gain of 255,000 jobs.
The gain exceeded forecasts from economists surveyed by Econoday who expected a gain of 157,000, MarketWatch reported.
In addition, November’s previously reported gain of 67,000 jobs was revised up to 124,000 in today’s report.
“As 2019 came to a close, we saw expanded payrolls in December,” said Ahu Yildirmaz, VP and co-head of the ADP Research Institute. “The service providers posted the largest gain since April, driven mainly by professional and business services. Job creation was strong across companies of all sizes, led predominantly by midsized companies.”
The service-providing sector added 173,000 jobs in December, led by the trade/transportation/utilities segment with 78,000 added jobs and professional/business services with added 61,000 jobs. On the flip side, the leisure/hospitality and the information sectors lost 21,000 and 14,000 jobs respectively.
The goods-producing sector added 29,000 jobs; a gain of 37,000 construction jobs offset declines of 7,000 manufacturing jobs and 1,000 jobs in the natural resources/mining sector.
The report also noted midsize businesses, those with between 50 and 499 employees, collectively added 88,000 jobs in December. Small businesses added 69,000 jobs and large businesses added 45,000 jobs.
“Looking through the monthly vagaries of the data, job gains continue to moderate. Manufacturers, energy producers and small companies have been shedding jobs,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report in collaboration with ADP. “Unemployment is low, but will begin to rise if job growth slows much further.”
Source: Staffing Industry Analysts, January 8, 2020