ADP: Private Employers Add 215,000 Jobs in November

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private sector hiring adp
Ross D. Franklin/AP
By Jeff Cox

Private sector job creation surged in November, with ADP reporting 215,000 new jobs in a number that could put some heat on the Federal Reserve to begin reducing its monthly stimulus.

Economists expected ADP to report the private sector created 173,000 new jobs in November.

"This feels pretty good," Mark Zandi, an economist with Moody's Analytics, which assists ADP in putting together the monthly report, said on CNBC. "I'm surprised at how well the job market held up in the face of what happened in Washington."

Economists had expected the government shutdown in early October to put pressure on the job market, but that has not shown up in any of the data released since then.

In fact, ADP (ADP) sharply revised its October number up to 184,000 from an initially reported 130,000.

Services again led job creation with 176,000 new positions, though goods-producing added a healthy 40,000 in November, up from 29,000 in the previous month.
Construction and manufacturing were good for another 18,000 jobs each. For manufacturing, it was the best month in nearly two years.

As always, the numbers will be read through the prism of Fed policy.

If the private payrolls count is an accurate barometer for the nonfarm payrolls reading the Bureau of Labor Statistics releases Friday, it could up the pressure for the U.S. central bank's Open markets Committee to ease off on the $85 billion in monthly bond purchases its carries out through its quantitative easing program.

"The market is trying to work out whether good news is bad but clearly this report argues in favor of a December tapering at the FOMC," Andrew Wilkinson, chief economic strategist at Miller Tabak, said in a note.

November job creation tilted heavily towards businesses with fewer than 50 employees, which added 102,000 new positions. Large firms contributed 65,000 while medium-sized companies created 48,000.


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7 Comments

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TINKDAY

So by far most of the jobs are in the service sector, which are low paying, no benefits, seasonal, and part time.

December 04 2013 at 4:40 PM Report abuse rate up rate down Reply
1 reply to TINKDAY's comment
dweeeb.buster

Yes, those low paying no benefit seasonal part-time jobs in health care, accounting, law, etc.

That's it!

December 04 2013 at 7:12 PM Report abuse -1 rate up rate down Reply
dumbsomey

On a related note, in a separate report this morning automakers reported car and light truck sales at a 16.4 million annual rate in November, a 7.7% increase from October, and the fastest pace since early 2007.

Coming on the heels of the October retail sales figures, which easily beating consensus expectations by showing consumer spending rose 0.4% to a new all-time high during the midst of the government SLOWdown, this combination suggests it appears inflation-adjusted consumer spending will grow at around 2.5% in Q4.

Can you imagine the howling that will be heard from every corner of the nation if early next year during the next round of debt ceiling contortions, the lame-duck Panderer in Chief again attempts his cartoonish tale of impending armegeddon sure to ensue if citizens refuse to allow mouth-breathing knuckle-draggers to continue confiscating more and more and more of the fruits of citizens labor?

December 04 2013 at 12:38 PM Report abuse -1 rate up rate down Reply
pgile

These improvements in hiring happened AFTER the government shutdown ended. So once employers were relieved to see that the adverse effects of the shutdown were eliminated at least temporarily and the government was back in business, they increased their hiring. Makes sense.

December 04 2013 at 9:52 AM Report abuse rate up rate down Reply
1 reply to pgile's comment
dweeeb.buster

" In fact, ADP sharply revised its October number up to 184,000 from an initially reported 130,000".

It looks like your drooling was taking place before, during, and after the faux shutdown.

December 04 2013 at 9:55 AM Report abuse +1 rate up rate down Reply
1 reply to dweeeb.buster's comment
pgile

Good catch. Since the govt. shutdown lasted until Oct. 16, hiring picked up in October. But since there were only 15 days left in the month, it wasn't until November when the full positive effect was translated into more hirings. Makes sense.

December 04 2013 at 7:39 PM Report abuse rate up rate down
dweeeb.buster

"Economists had expected the government shutdown in early October to put pressure on the job market, but that has not shown up in any of the data released since then.

In fact, ADP sharply revised its October number up to 184,000 from an initially reported 130,000".

Other than the dumbest 1% who can be counted on to get everything wrong, could there possibly be anybody else left who imagines the temporary government SLOWdown shouldn't be made permanent?

December 04 2013 at 9:03 AM Report abuse rate up rate down Reply