FXStreet (Mumbai) – ADP National Employment Report today showed U.S. private employers added 217,000 jobs in November, the biggest most since June. Economists surveyed by Reuters had predicted the ADP National Employment Report would show 190,000 jobs added. Private payroll gains in October were revised up to 196,000 from the erstwhile 182,000 increase.
Employment gains have been healthy across businesses. Small employers added 81,000 jobs; medium-sized companies added 62,000 and 74,000 workers were hired by large businesses. Again, a record 57,000 people were added in November by those large companies whose strength ranges from between 500 and 999 workers. The services sector added 204,000 jobs, while 13,000 new workers were hired by goods-producing companies.
The ADP figures are released ahead of of the U.S. Labor Department’s more comprehensive non-farm payrolls report, which includes both public and private-sector employment. According to economists polled by Reuters, the Labor Department’s report is likely to show U.S. employers hired 200,000 workers in November. The unemployment rate is estimated to come in at 5.0 per cent. Mark Zandi, chief economist at Moody’s Analytics believes that the “economy is fast approaching full employment and will be there no later than next summer.”
The surprise jobs growth once again highlights robust labour market. The jobs data further strengthens the December rate hike argument. According to the CME Group’s FedWatch site, currently there is a 75 per cent probability that the U.S. central bank will raise interest rates this month for the first time since June 2006.
(Market News Provided by FXstreet)