A report released by payroll processor ADP on Thursday showed private sector employment in the U.S. jumped by much more than expected in the month of December.
ADP said employment in the private sector surged up by 250,000 jobs in December after climbing by a downwardly revised 185,000 jobs in November.
Economists had expected an increase of about 190,000 jobs, matching the job growth originally reported for the previous month.
The report showed employment in the service-providing sector shot up by 222,000 jobs, with employment in professional/business services showing a notable increase of 72,000 jobs.
Employment in the goods-producing sector also climbed by 28,000 jobs, as employment in construction and manufacturing rose by 16,000 jobs and 9,000 jobs, respectively.
“Looking at company size, small businesses finished out 2017 on a high note adding more than double their monthly average for the past six months,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
ADP said employment at small businesses jumped by 94,000 jobs, while employment at medium businesses surged up by 100,000 jobs and employment at large businesses increased by 56,000 jobs.
Paul Ashworth, Chief U.S. Economist at Capital Economics, said the stronger than expected job growth in the ADP report was probably skewed upwards by the recent strength of the Labor Department’s non-farm payrolls figures, which are used as one of the inputs
“Nevertheless, after the earlier disruption caused by the hurricanes, the labor market clearly ended 2017 with some considerable momentum,” Ashworth said.
On Friday, the Labor Department is due to release its more closely watched monthly jobs report, which includes both public and private sector jobs.
The report is expected to show an increase of about 190,000 jobs in December following the jump of 228,000 jobs in November. The unemployment rate is expected to hold at 4.1 percent.
The material has been provided by InstaForex Company – www.instaforex.com
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