ADP Reports 216k New Jobs Added in November

The payroll services provider, ADP, said 216,000 new jobs were added in the private sector during the month of November. The strongest addition since June, when 262k new jobs were added. The data was much higher than the downwardly revised 119k (revised from 147k) reported in October, and also well above the 165k analyst were expecting, according to a Thomson Reuters survey.

Small businesses (49 or fewer employees) added 37,000 new jobs. Medium sized companies (employing between 50-499 people) added 89,000 new job positions. While the largest companies (500+ employees) increased payrolls by 90,000.

The largest segment of the U.S. economy, the services sector, accounted for all the job gains, with 228,000 new jobs reported, while the manufacturing sector shed 11,000 positions.

From the official press release: “For the month of November 2016 we saw very strong job growth that has almost doubled in gains over October 2016,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “This growth was seen in primarily consumer-driven industries like retail and, leisure and hospitality – across all company sizes. Overall, consumers are feeling confident and are driving the strong performance we currently see in the job market.”

Markets experienced only a small reaction to the news. The ICE US Dollar Index is currently trading up by 0.21% to 101.14. Gold is trading lower by 0.55% to $1,184.9. US stock index futures are edging higher ahead of the open. The benchmark S&P 500 futures are rising 5.25 points, or +0.24%, to 2,209.

On Friday December 2, the U.S. monthly jobs report for November will be released at 13:30 GMT. Non-farm payrolls (NFP) are expected to show growth of 174,000 new jobs, according to a Thomson Reuters poll. The unemployment rate is anticipated to remain even at 4.9%. This is the final jobs report before the December FOMC meeting, where the market is already pricing in a near 100% chance of a 25 bps rate increase.

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Paul Rosenberg

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