US private payrolls rise above expectations in December – ADP

The ADP National Employment Report, released on Thursday, showed that US private employers added 164,000 jobs in December.
This figure exceeded expectations and marked the largest monthly increase since August.

The data for November was revised slightly lower, showing that 101,000 jobs were added instead of the initially reported 103,000.

Economists had anticipated private payrolls to rise by 115,000, making the actual increase of 164,000 jobs higher than expected.

The ADP report precedes the release of the Labor Department’s comprehensive employment report for December, which is closely watched by the markets.

Despite the gradual slowdown in the labor market following interest rate hikes by the Federal Reserve, the ADP report suggests that there is still persistent strength in the job market, supporting the overall economy.

The Job Openings (JOLTS) report released on Wednesday showed a drop in job openings to nearly a three-year low in November. This suggests a current ratio of 1.40 job vacancies for every unemployed person.

According to surveys, the Labor Department’s Bureau of Labor Statistics is expected to report an increase of 170,000 total nonfarm payrolls in December.
The unemployment rate is anticipated to rise to 3.8% from 3.7% in November, and average earnings are expected to decline to 0.3% in December from 0.4% in the previous month.

In summary, the ADP report indicates a stronger-than-expected performance in US private payrolls for December, contributing to the broader assessment of the labor market’s resilience, even amid the ongoing normalization of interest rates by the Federal Reserve.
The upcoming Labor Department’s employment report will provide a more comprehensive view of the overall employment situation in the country.