US private sector employment increased in November, ADP reports

· Private payrolls climbed by 534,000 jobs last month

· Service sector added 424,00 jobs while Goods-producing added 110,000

U.S private companies added employment at a faster pace in November, despite concerns over growing fear of Omicron covid variant. 

According to the ADP National Employment Report released on Wednesday, private payrolls climbed by 534,000 jobs last month. The figure was less than the 570,000 jobs in October, which had been revised down by 1,000.

The ADP data was created in collaboration with Moody's Analytics and was released ahead of the Labor Department's more detailed employment report for November, which is due out on Friday. 

The Dow Jones economists forecasted 506,000 rises in private payrolls.

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“The labor market recovery continued to power through its challenges last month,” said Nela Richardson, chief economist, ADP, in a report. “November’s job gains bring the three-month average to 543,000 monthly jobs added, a modest uptick from the job pace earlier this year.

The Large businesses with 500 or more employees added 277,000 during the month. Medium-sized businesses with 50 to 499 employees recruited 142,000 people, while businesses with less than 50 workers employed 115,000.

The sector, which includes Natural resources/mining, construction, and manufacturing created 110,000 jobs. 

Also read: U.S. new home sales rise slightly in October

The Leisure/hospitality industry created 136,000 jobs; information sector increased by 10,000 while financial activities jobs climbed by 13,000 in total 424,000 jobs added in the service sector.

Professional and business services increased by 110,000, commerce, transportation, and utilities increased by 78,000, and education and health services increased by 55,000.

“Service providers, which are more vulnerable to the pandemic, have dominated job gains this year. It’s too early to tell if the Omicron variant could potentially slow the jobs recovery in coming months,” Richardson said. 

Also read: US jobless claims edge down to lowest level since 1969

U.S economic growth

The October–December quarter of U.S. economic growth was revised slightly higher, showing somewhat more consumer expenditure than originally predicted.

According to Commerce Department figures released last week, inflation-adjusted GDP increased at a 2.1 percent annualized pace for the third quarter.

While, the personal consumption expenditure price index, including food and energy, rose to 5% in October from a year ago.

Picture Credit: LA Times