Private sector job growth jumps by 235,000 in December, beating expectations: ADP

Hiring by US companies picked up in December, a sign that the labor market remains healthy despite the Federal Reserve’s high interest rates, according to the ADP National Employment Report released Thursday morning.

Companies added 235,000 jobs last month, easily beating the 150,000 gain that economists polled by Refinitiv had predicted. The November data was revised to show that 127,000 jobs were added.

The stronger-than-expected report comes as the Fed wages its toughest fight since the 1980s to curb inflation and slow the labor market with higher interest rates.

However, hiring was not strong: While manufacturing companies only added 22,000 new positions, service providers added 213,000. Most of the gains in December came from the entertainment and hospitality industry, which added 123,000 new jobs. Professional jobs followed with 52,000 hires, followed by education and health services with an increase of 42,000.

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IN THE US INDUSTRIES ARE GIVING A GREAT EFFECT TO KEEP THE WORKERS BACK, CONTINUED TO BE EXCEEDED ON THE PERIOD.

“The labor market is strong but fragmented, and hiring varies greatly by industry and industry size,” said Nela Richardson, chief economist at ADP. “Business sectors that hired hard in the first half of 2022 have reduced hiring and in some cases cut jobs in the last month of the year.”

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FED’S WAR ON INFLATION COULD COST 1M JOBS

The biggest damage, meanwhile, was in the marketing sector. the administration of the administration of the administration of the administration of the administration of the administration of the administration of that 24,000 decrease by 24,000.

By size, large businesses were the biggest losers, shedding 151,000 positions in December. Small businesses, meanwhile, added 195,000 workers, while medium-sized businesses employing between 50-499 gained 191,000 jobs.

US jobs report for November

The “employer” sign is displayed at the store on Oct. 21, 2022, in New York City. (Leonardo Munoz/VIEWpress/Getty Images)

Despite the surprising increase in wages in December, the increase in wages was the lowest since March 2022, according to the report, which is now being conducted jointly with the Stanford Digital Economy Lab. Wages rose 7.3% in December, down from the 7.3% recorded in November. The Fed is keeping an eye on wage increases – which could push up prices as businesses try to offset the cost of labor – as they try to fight inflation back to 2%.

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The data precedes the release of the closely watched December jobs report on Friday morning, which is expected to show that employers added 200,000 jobs following a gain of 263,000 in November. The unemployment rate is expected to remain stable at 3.7%.

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