ADP’s December National Employment Report is out.
The payroll firm estimated that 238,000 workers were added to private-sector payrolls in December, well above expectations for 200,000.
The figure reflects an acceleration in hiring from November’s 215,000 addition.
Below is a summary of the data from ADP:
Goods-producing employment rose by 69,000 jobs in December, up from an upwardly revised figure of 46,000 in November. Construction had its best month since 2006, adding 48,000 to payrolls. Manufacturing was strong as well, but growth slowed slightly to 19,000 in December. Over the course of 2013, goods-producers added 286,000 jobs. Nearly 75 per cent of these gains came from construction as the housing recovery accelerated throughout 2013.
Service-providing industries added 170,000 jobs in December, down slightly from an upwardly revised November figure of 182,000. The ADP National Employment Report indicates that professional/business services contributed the most to growth in service-providing industries, adding 53,000 jobs. This was the largest gain in the industry in a year. Expansion in trade/transportation/utilities slowed slightly, adding 47,000 jobs in December. Private payrolls increased by nearly 1.9 million jobs in the service-providing industries in 2013. The bulk of this increase was split evenly between transportation/trade/utilities and professional/business services. Finance brought up the rear gaining just 59,000 in the last twelve months.
“The U.S. private sector added 238,000 jobs in December, surpassing November as the strongest month for job growth in 2013,” said Carlos Rodriguez, president and chief executive officer of ADP. “It’s encouraging news that hopefully bodes well for 2014.”
Mark Zandi, chief economist of Moody’s Analytics, said, “The job market ended 2013 on a high note. Job growth meaningfully accelerated and is now over 200,000 per month. Job gains are broad-based across industries, most notably in construction and manufacturing. It appears that businesses are growing more confident and increasing their hiring.”
The report foreshadows the official jobs report that will be released by the U.S. Bureau of Labour Statistics on Friday. Before the release of the ADP report, economists predicted the BLS report would reveal a net change of 197,000 private-sector payrolls, while total nonfarm payrolls were expected to rise by 195,000.