Companies added a better-than-expected 217,000 private-sector jobs in November versus the 190,000 Wall Street estimate, according to the ADP.
Advertisement
The report, produced by ADP in collaboration with Moody’s Analytics, shows payrolls for businesses with 49 or fewer employees increased by 81,000 jobs in November, down 10,000 from October.
The ADP figure exceeded economists’ expectations and indicated Friday’s Labor Department jobs report should be solid enough for central bank policymakers to nudge up the so-called federal funds rate for the first time in almost a decade.
Mark Zandi, chief economist at Moody’s Analytics, which compiles the ADP data, said that hiring was strong in almost all industries outside the oil and gas sector, which has been battered by low oil prices, and factories that compete with overseas producers. “The current pace of job creation is twice that needed to absorb growth in the working age population”. Medium-sized companies with between 50 and 499 employees added 62,000 jobs, down from 67,000 jobs the previous month.
Service-providing employment led the way higher, jumping by 204,000 jobs in November following an upwardly revised increase of 174,000 jobs in October.
He added, “The economy is fast approaching full employment and will be there no later than next summer”.
Companies employing 500 or more workers added 74,000 jobs. Manufacturing, after two straight months of losing jobs, added 6,000 workers last month.
Professional/business services contributed 59,000 jobs.
Advertisement
Financial services added 9,000 new jobs. Labor reported a total 271,000 gains for the month, a strong rebound after the 200,000-plus monthly average in 2015 plunged to 145,000 in August and September amid global troubles and market turbulence. The unemployment rate is expected to remain flat at 5.0%. The dollar has jumped about 13 percent in value this year, which makes US goods more expensive overseas.
