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Tags: payrolls | private | jobs | labor

ADP: Companies Hire 202,000, Adding Most Workers Since April

ADP: Companies Hire 202,000, Adding Most Workers Since April
(Feng Yu/Dreamstime)

By    |   Wednesday, 08 January 2020 08:33 AM EST

U.S. companies in December added the most jobs in eight months, suggesting the labor market entered 2020 with momentum.

Businesses’ payrolls increased by 202,000 after an upwardly revised 124,000 gain a month earlier, almost double the initially reported figure, according to ADP Research Institute data released Wednesday. That exceeded all but one estimate in a Bloomberg survey of economists that called for a 160,000 gain.

Economists polled by Reuters had forecast private payrolls advancing 160,000 last month following a previously reported 67,000 rise in November.

The ADP report, which is jointly developed with Moody's Analytics, was published ahead of the government's more comprehensive employment report for December scheduled for release on Friday. It has a poor record predicting the private payrolls component of the government's employment report.

According to a Reuters survey of economists, nonfarm payrolls likely increased by 164,000 jobs last month after surging 266,000 in November. The unemployment rate is forecast steady near a 50-year low of 3.5%. 

The ADP report indicates the labor market may be able to sustain recent momentum in 2020 as hiring remains resilient against a backdrop of cooler economic growth and lingering geopolitical uncertainty.

The Labor Department’s employment report due Friday is forecast to show private payrolls increased by 153,000 in December. The unemployment rate is forecast to hold at a half-century low of 3.5% for a second month as wages continue steady gains. The ADP report differs in methodology and doesn’t directly correlate with the government’s monthly employment report.

Goods-producing jobs increased by 29,000 in December as construction payrolls surged the most in eight months.

Service-provider employment rose 173,000 last month, led by gains in trade and transportation, business services and health services.

Hiring at small businesses rose 69,000 and large businesses added 45,000 to payrolls.

Manufacturing, information and leisure were among industries shedding jobs in December

ADP’s payroll data represent about 411,000 firms employing nearly 24 million workers in the U.S.

Material from Bloomberg and Reuters has been used in this report.

© 2023 Newsmax Finance. All rights reserved.

U.S. private payrolls surged in December, but the pace of job growth was likely flattered by a seasonal quirk.
payrolls, private, jobs, labor
Wednesday, 08 January 2020 08:33 AM
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