NAM: Private-Sector job growth exceeded expectations in November
From NAM’s Manufacturing Economy Daily
The ADP Research Institute today says its National Employment Report shows private-sector employers added 217,000 new jobs in November, mostly in the service sector. Economists had expected the report to show 190,000 new jobs, Bloomberg News states, adding the report was “a sign the labor market continues to strengthen.”
Companies are “adding employees and retaining those already on their payrolls as a tighter labor market makes it difficult for them to find skilled and experienced workers.” Mark Zandi, chief economist at Moody’s Analytics Inc., the company that produces the ADP figures, stated that “Job growth remains strong and steady,” adding “The economy is fast approaching full employment and will be there no later than next summer.”
USA Today broke down sector growth, reporting that the professional and business services “led the gains, with 59,000 new jobs. Trade, transportation and utilities added 30,000 and construction, 16,000. Manufacturers added 6,000 positions in a sign the industry may be stabilizing after a strong dollar, weakness overseas and oil prices have led to payroll losses in recent months.”
The Los Angeles Times reports the ADP figure “exceeded economists’ expectations and indicated Friday’s Labor Department jobs report should be solid enough for central bank policymakers to nudge up the so-called federal funds rate for the first time in nearly a decade.”
CNBC adds the report “comes as the Fed prepares to hike its key rate at the Federal Open Market Committee meeting Dec. 15-16. Wall Street has been waiting on tenterhooks for the Fed to move for the first time since it last hiked rates in mid-2006 and took its key lending rate to near-zero in late 2008.”
Wage Growth Accelerates In 3rd Quarter. Reuters reports that a separate Labor Department Report showed signs that the nation’s wage growth, which had been slow in recent months, may be accelerating. The article states that during the third quarter, compensation per hour increased at an annual rate of 4.0 percent.
Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri.