Employers continued adding hundreds of thousands of jobs at the end of last year, outperforming the expectations of many economists, according to the December 2011 ADP National Employment Report.
Private-sector employers added 325,000 jobs during December, which is much better than many experts were predicting. This is a good sign that the national economy will continue to recover as we embark on the new year.
“December’s advance was the largest monthly gain since December 2010, reflecting strong job creation across most industries,” Carlos Rodriguez, president and CEO of ADP, said in a statement. “Small and medium-sized businesses were hiring at a similar pace. Job creation among large employers was also encouraging.”
The service-providing sector accounted for the majority of the job gains, adding 273,000 employees during December. The goods-producing sector added another 52,000 workers.
Although small business continued to hire the most (+148,000), medium businesses were a close second (+140,000). Large businesses added another 37,000 workers.
“The estimate for December suggests that employment accelerated for the fourth consecutive month, consistent with the year-end pick-up in economic growth,” Makroeconomic Advisers Chairman Joel Prakken said. “Today’s report, which is notably above the consensus forecasts both for today’s number and for Friday’s jobs estimate from the Bureau of Labor Statistics, points towards a strengthening labor market.
“Today’s report also suggests that November’s somewhat surprising decline in the unemployment rate might stick and, indeed, that the unemployment rate could fall further in December,” he continued. “Other indicators also signal some firming of labor market conditions, including the downward trend in unemployment claims, upturns in consumer sentiment and confidence influenced by perceptions about the availability of jobs, along with a rising trend in employees voluntarily quitting their positions.”
