U.S. Private Sector Job Growth Exceeds Economist Estimates In December

(RTTNews) - Private sector employment in the U.S. increased by somewhat more than expected in the month of December, according to a report released by payroll processor ADP on Wednesday.

ADP said the private sector added 241,000 jobs in December following an upwardly revised increase of 227,000 jobs in November.

Economists had expected private sector employment to increase by about 235,000 jobs compared to the addition of 208,000 jobs originally reported for the previous month.

Mark Zandi, chief economist of Moody's Analytics, said, "The job market continues to power forward. Businesses across all industries and sizes are adding to payrolls."

"At the current pace of job growth, the economy will be back to full employment by this time next year," he added.

The report showed a notable increase in service-providing employment, which jumped by 194,000 jobs in December after climbing by 187,000 jobs in November.

The professional/business services industry contributed 69,000 jobs in December, while employment in trade/transportation/utilities grew by 44,000 jobs.

Goods-producing employment rose by 46,000 jobs in December compared to the increase of 40,000 jobs in November, reflecting stronger job growth in both the construction and manufacturing sectors.

ADP also said employment at small businesses surged up by 106,000 jobs in December, while employment at medium and large businesses rose by 70,000 jobs and 66,000 jobs, respectively.

Jay Morelock, an economist at FTN Financial, said, "The ADP print was a relief, with some fearing it would fall below 200,000 due to oil price disruptions. Fears of a dismal jobs report this Friday have been assuaged, for now."

Friday morning, the Labor Department is scheduled to release its monthly employment report, which includes both public and private sector jobs.

Economists expect an increase of about 245,000 jobs in December after employment jumped by 321,000 jobs in November. The unemployment rate is expected to dip to 5.7 percent.