U.S. Companies Add Most Workers Since April, ADP Says
Businesses’ payrolls increased by 202,000 after an upwardly revised 124,000 gain a month earlier,.
(Bloomberg) -- 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.
Key Insights
- 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.
Economist’s View
“Job creation was strong across companies of all sizes, led predominantly by midsized companies,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement.
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- 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.
To contact the reporter on this story: Reade Pickert in Washington at epickert@bloomberg.net
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle
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