KABOOM!The ADP jobs report just demolished expectations with 325K new private sector jobs.
Analysts were looking for just 178K. Last month was just 204K.
Here’s the announcement.
ADP today reported that employment in the U.S. nonfarm private business sector increased by 325,000 from November to December on a seasonally adjusted basis. The estimated advance in employment from October to November was revised down slightly to 204,000 from the initially reported 206,000.
The increase in December was the largest monthly gain since last December 2010 and nearly
twice the average monthly gain since May when employment decelerated sharply.
Employment in the private, service-providing sector rose 273,000 in December, which is up from an increase of 176,000 in November. Employment in the private, goods-producing sector increased 52,000 in December, while manufacturing employment increased 22,000.
Employment on large payrolls—those with 500 or more workers—increased 37,000, and employment on medium payrolls—those with 50 to 499 workers—rose 140,000 in December. Employment on small payrolls—those with up to 49 workers—rose 148,000 that same period, up from the 109,000 jobs created among small businesses last month. Of the 148,000 jobs created by small businesses, 18,000 jobs were created by the goods-producing sector and 130,000 jobs were created by the service-producing sector.
Employment in the construction industry increased 26,000 this month, which is up from an increaseof17,000inNovember. Employmentinthefinancialservicessectordeclined1,000in December.
The ADP jobs report came out at 8:15 AM ET.
The survey — which only measures private payroll gains — is a good preview for the Non-Farm Payrolls Report, which comes out on Friday.
Analysts expected growth of 178K vs. last month’s 206K.
Generally, labour market signals have been pretty good. Certainly some were expecting a reading of over 200K.
Oh, and by the way. People like to take shots at ADP for not being a good predictor of Non-Farm Payrolls, but actually it’s very good, as this chart shows nicely.