Private-sector payrolls in America rose by 190K last month, according to a new report from ADP. That is down from October but slightly better than anticipated. The less volatile 3-month average of ADP’s hiring estimates ended November at 174K, low compared to earlier this year but still an overall healthy pace of job creation that should maintain the downward trend in unemployment.
Under the hood, most of the private-sector payrolls added last month were as usual found in the services sector (+155K), but the goods-producing sector also posted a solid 36K gain thanks to strong manufacturing hiring. As for small business job creation, payrolls at firms with 1-49 employees rose by 50K in November, accounting for 26 percent of all the private-sector payrolls growth last month. Mark Zandi, chief economist of Moody’s Analytics, added that “the only soft spots are in industries being disrupted by technology, brick-and-mortar retailing being the best example," and cautioned that “there is a mounting threat that the job market will overheat next year.”
Sources: Econoday, ADPPost author: Charles Couch