The ADP National Employment Report showed the U.S. private sector created 190,000 new jobs, beating the consensus forecast. Notable, the strong post-hurricane report for October was unrevised at 235,000.
“The job market is red hot, with broad-based job gains across industries and company sizes,” Mark Zandi, chief economist of Moody’s Analytics, said. “The only soft spots are in industries being disrupted by technology, brick-and-mortar retailing being the best example. There is a mounting threat that the job market will overheat next year.”
In a sign the U.S. economy (specifically the private sector) is beginning to return to normal reliance on higher-paying, job creation, small businesses (1 – 49 employees) added 50,000 jobs in the report. Mid-sized businesses with 50 – 499 employees added 99,000, while large businesses only added 41,000.
“The labor market continues to grow at a solid pace,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Notably, manufacturing added the most jobs the industry has seen all year. As the labor market continues to tighten and wages increase it will become increasingly difficult for employers to attract and retain skilled talent.”
Manufacturing added 40,000 jobs in November, the fastest pace all year and a good sign for wage increases. Overall, the goods-producing sector added 36,000 as construction sliced off 4,000 and natural resources and mining remained unchanged after finally showing growth this year for the first time in over 9 years.