U.S. Private Sector Employment Jumps By 217000 Jobs In November

Private employers added 217,000 jobs in November as service-sector momentum offset slow factory hiring, payroll processor ADP reported in a positive preview of Friday’s monthly Labor Department employment report.

The modest 13,000 overall gain among goods-producing industries was typical for the year, but in this case manufacturing-sector employment eked out a 6,000 increase after falling in the prior two months.

“Job growth remains strong and steady”, Mark Zandi, chief economist at Moody’s Analytics Inc.in West Chester, Pennsylvania, said in a statement. “The current pace of job creation is twice that needed to absorb growth in the working age population”.

Service-providing employment led the way higher, jumping by 204,000 jobs in November following an upwardly revised increase of 174,000 jobs in October. Companies with over 1,000 employees gained 17,000 jobs, after adding 28,000 in October.

He added, “The economy is fast approaching full employment and will be there no later than next summer”. Within the large business segment, companies with between 500 and 999 workers hired a record 57,000 people in November, according to the report.

Small businesses (49 employees and fewer) accounted for 81,000 of those gains, followed by 62,000 from medium-sized (50 to 499 employees) businesses, and 74,000 came from large businesses (500+ employees).

Private businesses may have added 190,000 workers after rising 268,000 the month before, the survey projections also showed. “The increase was driven in large part by a rebound in professional/business service jobs”. Trade, transportation and utilities (30k, previous: 36k) and financial activities (9k, previous: 11k) reported employment growth in line with recent trends. Economists project that the unemployment rate, which unexpectedly dipped in October, will hold steady at 5%. The 2-year U.S. Treasury note yield US2YT=RR , the most sensitive to Fed policy expectations, rose to a session high above 0.94 percent.