According to payroll processor ADP, reports a substantial gain in private sector jobs nationally last month.
Private sector employment increased by 807,000 jobs from November to December according to the December ADP® National Employment ReportTM. …
“December’s job market strengthened as the fallout from the Delta variant faded and Omicron’s impact had yet to be seen,” said Nela Richardson, chief economist, ADP. “Job gains were broad-based, as goods producers added the strongest reading of the year, while service providers dominated growth. December’s job growth brought the fourth quarter average to 625,000, surpassing the 514,000 average for the year. While job gains eclipsed 6 million in 2021, private sector payrolls are still nearly 4 million jobs short of pre-COVID-19 levels.”
ADP’s December employment report, which measures the change in employees on private companies’ payrolls, said that 807,000 jobs were added last month, significantly above the 400,000 expected by economists. The November report showed a 505,000 increase, which was revised down from 534,000 in the latest release..
The ADP National Employment report, which surveys a sizable sample of the U.S. labor market, is seen as a rough preview of the government’s jobs data for December, which is set to be released on Friday. Economists surveyed by FactSet are expecting Friday’s nonfarm payrolls report to come in at 400,000 jobs added.
“It is encouraging and it’s likely to lift expectations for what we see on Friday,” said Scott Brown, Raymond James chief economist.
It is encouraging. But, as Calculated Risk writes,
The BLS report will be released Friday, and the consensus is for 400 thousand non-farm payroll jobs added in December. The ADP report has not been very useful in predicting the BLS report.