U.S. companies in December added the most jobs in seven months, indicating that more Americans are returning to the labor force and helping employers to fill a near-record number of
Businesses’
“Job gains were broad-based, as goods producers added the strongest reading of the year, while service providers dominated growth,” ADP Chief Economist Nela Richardson said in a statement.
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The larger-than-expected payrolls gain could indicate that employers had more success hiring in December as higher wages and attractive working terms lured people off the sidelines. Even so, a surge in COVID-19 infections in recent weeks could impact hiring if more Americans pull back on activities like travel and restaurant dining and businesses struggle to stay open.
The data precede Friday’s monthly jobs report from the Labor Department, which is currently forecast to show that the U.S. added 384,000 private payrolls in December. ADP’s data don’t always align with those of the government because of different measurement techniques.
Industry Breakdown
- Trade, transportation, utilities payrolls rose 138,000, the biggest gain since September 2020.
- Manufacturing, employment up 74,000, the largest advance since September 2020.
- Construction payrolls climbed 62,000, the most since June 2020.
- Professional and business payrolls rose 130,000, the largest gain since June 2020.
- Service-provider employment rose by 669,000, the most since June, led by leisure and hospitality.
- Payrolls at goods producers increased 138,000, the strongest since September 2020.
- Companies with more than 500 workers added 389,000, the most jobs since June 2020.
- Small businesses posted a gain of 204,000 in December, which was the most in six months.
ADP’s payroll data represent firms employing nearly 26 million workers in the U.S.
--With assistance from Chris Middleton
