The private sector added a stronger-than-expected 217,000 jobs in November, according to payroll processing firm ADP and Moody’s Analytics. ADP’s figures were above analysts’ expectations of 190,000 new private sector jobs. They also topped October’s numbers, when 196,000 jobs were created, revised upward from the initially reported 182,000. Economic analysts say that the positive labor news makes it more likely the Federal Reserve will raise interest rates later this month. It would be the first time rates have been raised in more than nine years.
Last month, small businesses added 81,000 jobs, midsize companies added 62,000 and large corporations created 74,000 jobs, according to ADP. Professional and business services led, with 59,000 new jobs. Trade, transportation and utilities added 30,000, and construction was up 16,000. Manufacturers added 6,000 positions.
“Steady as she goes in the job market,” said Mark Zandi, chief economist of Moody’s Analytics. “At this pace, the unemployment rate will drop by half a percentage point per annum. The tightening in the job market will soon prompt acceleration in wage growth.”
ADP’s report comes as the Federal Reserve prepares for a hike of its key rate at the Federal Open Market Committee meeting in the middle of December. The last time the Fed raised interest rates was in mid-2006.