Private sector job growth in the United States decelerated significantly in December, according to the ADP National Employment Report released on Wednesday. The report indicated an increase of 122,000 private payrolls, a notable decline from the 146,000 jobs added in November. Economists surveyed by Reuters had projected a more robust growth of 140,000 jobs.
Developed in conjunction with the Stanford Digital Economy Lab, the ADP report precedes the more comprehensive and closely monitored employment report issued by the Bureau of Labor Statistics (BLS) within the Labor Department, scheduled for release on Friday. It’s important to note that there is no direct correlation between the ADP report and the BLS employment report. Historically, initial ADP figures have often underestimated actual private payroll growth throughout the current year.
The slowdown in job growth observed in December was anticipated, following a surge in November attributed to the diminishing impact of hurricane disruptions and the resolution of strikes by factory workers at Boeing and another aerospace company. These events had artificially suppressed job growth in prior months, leading to a rebound effect in November.
A Reuters survey of economists predicted a more moderate increase of 135,000 private sector jobs in December, following November’s 194,000 job gain. Factoring in projected increases in government employment, overall nonfarm payrolls are expected to have risen by 160,000 jobs in December, a decrease from the 227,000 jobs added in November. The unemployment rate is projected to remain steady at 4.2%. The December employment figures will provide valuable insights into the overall health of the US labor market as the year concludes.
