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Private job growth totals 807,000 in December, more than doubling expectations

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An advertisement for We are hiring hangs from the Target wall in Miami on December 03/2021.

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According to ADP’s Wednesday report, companies hired the most people in seven months during December, despite mounting concerns about Covid cases.

The private job growth was 807,000 in November, which is well above the Dow Jones estimate of 375,000 and the November gain at 505,000. From the initial reported 534,000, it was reduced to 53,000.

According to ADP data, the total was the highest for the market’s job market since May 20,21’s 882,000.

Although the majority of hiring was broad-based in nature, leisure and hospitality accounted for 246,000 additional positions. Transportation, trade, and utilities contributed 18,000. Professional and business service increased by 130,000. Education and health services added 85,000.

With 669,000 more new employees in service professions, however, gains were made on the side of goods-producing industries. The manufacturing sector saw 74,000 growth, while construction saw 62,000.

In the same month, Covid cases were at an all-time high and sparked fears of an economic slowdown. As the omicron variant of the virus has spread through the nation, the U.S. now has one million more positive cases per day.

The ADP Report, which was prepared with Moody’s Analytics covers December through January. This is before any serious escalation.

Nela Richardson is ADP’s chief economic economist. She stated that December’s employment market was stronger as Omicron’s effect faded. The broadest job gains came from goods producers, who had the highest readings of the year while service providers led growth.

This release is two days ahead of the Labor Department’s Bureau of Labor Statistics nonfarm payrolls data, which will be closely monitored. According to consensus Dow Jones estimates, it should show growth of 422,000.

Both counts may differ significantly: ADP averaged 441,000 per month for the twelve months preceding December while BLS averaged 483,500.

The bulk of December’s gains were attributed to businesses with at least 500 employees, which added 389,000 new jobs. Smaller firms contributed 213,000. Medium-sized companies added 224,000 jobs, while smaller businesses with less than 50 employees provided 204,000.

Rapid hiring follows trends in weekly jobless claims that are at their lowest point in 50 years.

The total unemployment rate remains at or near pre-pandemic levels. Although the unemployment rate dropped from the high of 14.8% during the pandemic, to 4.2% at the moment, there are still 3.6 millions fewer Americans in work than the February 2020 figures. The labor force also has a smaller size, with a participation rate of 1.5 percent less according to BLS data.

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