The employment picture in the American private sector continued to brighten in November, with businesses adding 208,000 new positions, according to ADP’s monthly jobs report.
While the gain was less than the 220,000 positions economists expected, the acceleration still marked the sixth consecutive month that job creation exceeded 200,000, signaling that the labor market is growing consistently healthier. “At this pace, the unemployment rate will drop by half a percentage point per annum,” says Mark Zandi, chief economist at Moody’s Analytics, which works with ADP on the report. “The tightening in the job market will soon prompt acceleration in wage growth.”
In November, the services sector experienced the strongest growth, with 176,000 jobs added, while the goods-producing sector tallied 32,000 positions. Breaking the numbers down, the trade, transportation and utilities field led the way with 49,000 new jobs, while professional and business services came second with 37,000.
Businesses with less than 50 employees fueled the November employment gains, swelling their payrolls by 101,000. Medium-sized firms – those with 50 to 499 employees – bolstered their ranks by 65,000.
The ADP data comes in advance of the federal government’s monthly nonfarm payrolls report, which is to be released Friday. Economists expect that report to show the economy added 225,000 jobs, compared to October's 214,000.