On Wednesday, the ADP National Employment report, produced with Moody’s Analytics, posted private payrolls for November. The number was a solid 534,000. This was much higher than the 506,000 predicted by economists who were polled by the Wall Street Journal.
The ADP report said that 424,000 jobs were added by service sector providers. The leisure and hospitality sector which is part of the services sector that saw a huge drop in jobs during the start of the pandemic as bars, hotels, restaurants and similar businesses were shut during several lockdowns or worked with limited capacity. However, the sector has recovered well this month as it added 136,000 jobs in the services sector.
Professional and business services added 110,000 jobs while trade, transportation and utilities gained 78,000 jobs. Education and health services also added 55,000 jobs. Information gained 10,000 jobs, financial activities added 13,000 jobs and other services added 22,000 jobs.
Goods producers added 110,000 jobs: natural resources and mining added 7,000 jobs, construction added 52,000 jobs and there were 50,000 jobs added to manufacturing.
The payroll processor said that large businesses who have 500 or more employee added 277,000 jobs in November. Those who employed more than 1000 workers saw the largest gains as these companies added 234,000 of the total 277,000 jobs. Medium businesses who have 50 to 499 employees added 142,000 jobs. Small businesses with 1 to 49 employees in the private sector added 115,000 jobs.
The ADP report said that job gains have crossed 15 million since the summer of 2020 as the economy is recovering from the pandemic. The payrolls are still short by 5 million when compared with pre-pandemic levels.
During a press call for reporters, Nela Richardson, chief economist at ADP said that the reason people remained sidelined were “hard to generalize” as they were “varied” as well were “unique.” CNBC also reported that the economist said that the dominating performance this year was by service providers and it was too early to predict whether the Omicron variant would “slow the jobs recovery in coming months.”
According to MarketWatch Lydia Boussour, economist at Oxford Economics said that the labor market in the nation had “regained steam” but there was still “considerable uncertainty” due to the emergence of the new Covid variant–Omicron.
