ADP: Private Sector Adds 238,000 Jobs in December

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Detroit, Michigan. Veterans of the military look for jobs at Hiring Our Heroes, a job fair sponsored by the U.S. Chamber of Comm
Alamy
By Jeff Cox

Private sector job creation continued at a healthy clip in December, with companies adding a better-than-expected 238,000 positions despite the inclement weather.

ADP (ADP) and Moody's Analytics said the month was the best for 2013 and pointed towards a solid number when the government releases its nonfarm payrolls report Friday.

Economists expected the ADP/Moody's Analytics report to show the private sector created 200,000 positions in December, down slightly from the 215,000 initially reported for November.

"This is it. We're off and running," Moody's economist Mark Zandi told CNBC. "We've jumped to a new level of growth."

Among the highlights: Construction jobs grew by the largest monthly number since 2006, adding 48,000, while goods-producing industries contributed 69,000.

Overall, professional and businesses services again led the way with 170,000 new jobs, down a shade from November's 182,000.

The big number could sway economists to change their view of the monthly unemployment report from the Bureau of Labor Statistics, which is expected to show 196,000 additional positions, all but 1,000 from the private sector.

Deutsche Bank (DB) quickly revised its forecast, with Joe LaVorgna, the firm's chief U.S. economist, tweeting that he was raising his forecast.

Moreover, the ADP report helps justify the Federal Reserve's gradual move away from its $85 billion a month bond-buying program known as quantitative easing. The U.S. central bank's Open Markets Committee voted last month to cut the program by $10 billion a month. FOMC minutes to be released later Wednesday should shed more light on the Fed's decision-making process and how big a role employment improvements have played.

The jobs numbers also refuted the notion that the snowy and cold December might depress job creation.

"There were some concerns we heard ahead of today's blowout ADP number that cold weather may have thwarted hiring in December," Andrew Wilkinson, chief market strategist at Interactive Brokers, said in a note. "Perhaps that's a story for January as record low temperatures disrupt the economy."

Small businesses drove December's gains, adding 108,000 positions. Large businesses provided 71,000 jobs while medium-sized firms generated 59,000.

In industries, professional business services added 53,000 while trade, transportation and utilities generated 47,000 and manufacturing grew 19,000.


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22 Comments

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Valerie

"This is it. We're off and running. We've jumped to a new level of growth".

HOW can they write this tripe with a straight face???

January 09 2014 at 9:53 AM Report abuse rate up rate down Reply
jimmy_branch

Macy's just announced 5 store closings and 2500 jobs eliminated.

January 08 2014 at 10:44 PM Report abuse +1 rate up rate down Reply
granaryst

Raising the minimum wage and Obama's other lies will scuttle this slight improvement soon enough.

January 08 2014 at 7:44 PM Report abuse rate up rate down Reply
jimmy_branch

Everyone who lost a livable wage job to Wall Street and Obama can get a 4 hour a day, minimum wage, part time job at JCP and since they need 3 of these jobs just to put gas in the car to get there, they have created 3 jobs for ADP to report and cheer on the phony administration.

And with things to great why are we still giving the 1% $75 Billion a month?

Why isn't Gold $5 dollars an ounce since the economy is so great?

January 08 2014 at 5:34 PM Report abuse +2 rate up rate down Reply
jimmy_branch

ADP is a SPY agency mirroring the NSA taking confidential private citizen data and selling it to banks and sharing the Government.

This company illegally reports every job change you make to Banks and creditor's who are willing to pay for it and the Government for purposes of collecting child support..

ADP's is to the Government what Jim Cramer is to Wall Street. This company must report whatever lies the Government instructs it to report.

ADP IS AN ARM OF THE 1%....

January 08 2014 at 5:12 PM Report abuse +2 rate up rate down Reply
Iselin007

What are they going to do next lock the doors at the unemployment office an tell the people to get lost son you bother me?

January 08 2014 at 11:44 AM Report abuse +1 rate up rate down Reply
2 replies to Iselin007's comment
theycallmeroy3

The level of spending directed towards these programs certainly doesn't indicate that. And I can't remember the last time media showed an unemployment office closed.

January 08 2014 at 11:52 AM Report abuse rate up rate down Reply
theycallmeroy3

I don't know about you, but I wouldn't want long term unlimited unemployment benefits to be regarded as sound economic policy. And if that's the plan, I don't find it far fetched to ask, " How are we paying for this again?"

January 08 2014 at 12:13 PM Report abuse rate up rate down Reply
Iselin007

Until you see the 91 million not in the labor force begin to be moved in to the employed column most of these happy times reports can be dismissed as pure BS.

January 08 2014 at 11:41 AM Report abuse +2 rate up rate down Reply
Iselin007

There is no visible demand or wanted signs for staff nor is the traditional jobs newpaper anything but thinner then usual. If there is much real hiring it must be taking place in top secret headquarters because no real people are talking about it.

January 08 2014 at 11:33 AM Report abuse +5 rate up rate down Reply
Iselin007

In this real economy the retailers are not holding on to record numbers of seasonal staff past the date of termination of contracts while floor traffic drops. Companies are sitting on a lot of cash so their not spending it on more workers.

January 08 2014 at 11:28 AM Report abuse +1 rate up rate down Reply
ectullis

Seasonal

January 08 2014 at 11:06 AM Report abuse +3 rate up rate down Reply
1 reply to ectullis's comment
Iselin007

Love the way they hold on to previous numbers that you know have been discharged at the end of their temporary holiday contract which was likely part time and scheduled on a as needed basis. With the severe weather gripping the country and the Holidays the numbers of people working or filing claims is too eratic to take seriously. Manufacturing what soup, cup cakes, candy for Valentines day?

January 08 2014 at 11:23 AM Report abuse +5 rate up rate down Reply
1 reply to Iselin007's comment
theycallmeroy3

Wouldn't it be easier to just come out and say you don't believe the data and unemployment from your perspective is horrible? Really the only sound argument to be made from the ADP report is why isn't it bigger?
Obviously it would be a waste of time to suggest to you that older workers fared rather well during the recession, since it would rely on data.

January 08 2014 at 11:32 AM Report abuse rate up rate down