Job seekersPrivate employers gave the job market a helping hand in November, adding 93,000 jobs, ADP (ADP) announced Wednesday. It's the second straight month of significant gains -- the biggest in three years -- and it provides more evidence that the employment outlook may be picking up.

Equally significant, October's gain was revised substantially higher, up to 82,000 new jobs from the 43,000 initial estimate. A Bloomberg survey had expected private employers to add 72,000 jobs in November. By comparison, they added 29,000 in September.

ADP said the November report "shows an acceleration of employment and suggests the nation's employment situation is brightening somewhat."

Still Not Enough to Lower Unemployment

Even so, given the depth of job losses during the 2007-2009 recession, ADP cautioned against premature euphoria. "Nevertheless, employment gains of this magnitude are not sufficient to lower the unemployment rate, which likely will remain above 9% for all of 2011," ADP said. "Furthermore, given modest GDP growth in the second and third quarters, and the usual lag of employment behind GDP, it would not be surprising to see several more months of only moderate gains in employment even as the economic recovery gathers momentum."

Separately, private placement firm Challenger, Gray & Christmas said planned layoff announcements by U.S. employers rose 28% to 48,711 in November from 37,986 in October, CNNmoney.com reported Wednesday. It was the highest job-cut total since March, when 67,611 were chopped. However, November's figure is still down 3.3% compared to November 2009.

The ADP report showed that job gains were concentrated in small businesses, which added 54,000. Midsize companies added 37,000, and large businesses added 2,000.

An End to Big Job Losses?

In November, construction employment declined 3,000 -- its smallest loss since March 2007 -- bringing jobs lost in the sector to 2.31 million since the January 2007 peak. Services added 79,000 jobs, the goods-producing sector added 14,000 jobs -- its first monthly increase since March 2007 -- and manufacturing added 16,000. Financial services employment was flat.

ADP's November report is clearly a positive economic data point. Not only did that month's gains exceed expectations but October's total was revised almost 100% higher. Combined, the two reports suggest a job market that's rebounding. At a minimum, they provide strong evidence that the long stretch of large monthly job losses is ending.

Still, policymakers -- including the Federal Reserve -- will remain focused on job creation. The U.S. needs to create 100,000 to 125,000 jobs per month just to keep the unemployment rate, currently a very high 9.6%, from rising.

Next up is the more-telling U.S. Labor Department monthly nonfarm payroll report, containing both private and public sector data, to be released Friday, Dec. 3. It's now expected to show an increase of 168,000 jobs, according to a Bloomberg survey of economists, after an October gain of 151,000 jobs.

Increase your money and finance knowledge from home

Socially Responsible Investing

Invest in companies with a conscience.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum

122 Comments

Filter by:
John

This story flies directly in the face of the other story that said unemployment rose as only 39K jobs were created. What kind of garbage are you people pumping.

December 03 2010 at 10:26 AM Report abuse rate up rate down Reply
Paul FIQUET

GOOD NEWS WOULD BE NEW STEEL MILLS AND FACTORIES ARE REPORTED BEINGH BUILT ALL OVER THE MIDWEST AND THE NORTHEAST...BUT I AM A DREAMER ????

December 02 2010 at 7:33 AM Report abuse +1 rate up rate down Reply
Pat

Sorry, kamdajani, Automatic Data Processing (ADP) is the one of the largest providers of payroll services in the world. They have 550,000 customers according to their website. They are not the government. Their executives are more likely to be Republican than not. It is probable that ADP has no idea whether the employees companies added to their payrolls are temporary or permanent since this is not likely to be information needed in order to set the new employees up for payroll checks to be issued. As to the comments of whatup*****, have you ever tried to live on unemployment compensation checks? It's not a comfortable time in one's life, at least it wasn't 50 years ago when I was in that unfortunate position. At that time, I was a stay at home mom and my husband worked for Chrysler Corporation where every year without fail he was laid off as the market for automobiles fluctuated. It was not a fun time and I was pleased as punch when he became a policeman.

December 02 2010 at 7:21 AM Report abuse rate up rate down Reply
yearnd

link yesterdays news with todays folks - the long term unenployment bennies are running out for some. so its tine to work for awhile. if the checks are turned back on watch the number rise again

December 02 2010 at 7:08 AM Report abuse -1 rate up rate down Reply
uspimain

more jobs for foreigners how about the TAXPAYER you know AMERICAN JOBS.....

December 02 2010 at 6:25 AM Report abuse +2 rate up rate down Reply
uspimain

The smoke screen...we added jobs..............hey folks don't you think that because of the holidays jobs would be added I mean come on how stupid do they think we are. Let's see what January February and Match of 2011 brings.

December 02 2010 at 6:25 AM Report abuse rate up rate down Reply
1 reply to uspimain's comment
whereisvic

Who do you think is doing the reporting here? Don't you think it's interesting that the October number, you know, the month BEFORE the midterms, was grossly UNDER estimated?

December 02 2010 at 9:07 AM Report abuse +1 rate up rate down Reply
kamdajani

adp is bunch of government crooks .no wonder our government start looking to increase retirement age and cut medicare.taxpayers money vanished.bernenke the fed spent trillions from taxpayers money to bail wall street crooks that gambled in the housing market and mortgages.of course our wars another drain.how disgusting government reports became full of lies.what a ponzi scam.

December 02 2010 at 5:48 AM Report abuse rate up rate down Reply
blrpro

What jobs, are small town is being destroyed by the so called we're not in a recession anymore...

December 02 2010 at 12:08 AM Report abuse +1 rate up rate down Reply
cgino

You notice not a word about how many new unemployment filings this week! State street just laid off 1400 people this week, is that in these figures? Just more creative accounting coming from washington to conn us into believing things are getting better so we start spending our way out of the hole they have put us in.

December 01 2010 at 11:24 PM Report abuse +3 rate up rate down Reply
ultraz2

MORE Capitol Hill Democratic and Republican BS, they need to be all unseated by public demand. More USA PROPAGANDA. Bring the jobs back home, international trade is not working.

December 01 2010 at 10:12 PM Report abuse +4 rate up rate down Reply
1 reply to ultraz2's comment
blrpro

Yeah to follow up on what you said troofdetector6. The Democrats have had control for the past 6yrs...

December 02 2010 at 12:10 AM Report abuse rate up rate down Reply