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Wednesday, January 05, 2011

ADP: Private Employment increased by 297,000 in December

by Calculated Risk on 1/05/2011 08:15:00 AM

ADP reports:

Private-sector employment increased by 297,000 from November to December on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The estimated change of employment from October to November was revised down but only slightly, from the previously reported increase of 93,000 to an increase of 92,000.

This month’s ADP National Employment Report suggests nonfarm private employment grew very strongly in December, at a pace well above what is usually associated with a declining unemployment rate. After a mid-year pause, employment seems to have accelerated as indicated by September’s employment gain of 29,000, October’s gain of 79,000, November’s gain of 92,000 and December’s gain of 297,000. Strength was also evident within all major industries and every size business tracked in the ADP Report.
Note: ADP is private nonfarm employment only (no government jobs).

The consensus was for ADP to show an increase of about 100,000 private sector jobs in December, so this was well above consensus.

The BLS reports on Friday, and the consensus is for an increase of 140,000 payroll jobs in December, on a seasonally adjusted (SA) basis, and for the unemployment rate to decline slightly to 9.7%.