Job Markets adds 807,000 new positions in December, surprising forecasts


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The US economy created 807,000 new jobs in December, closing strongly last year and defying expectations, according to a report by private payroll company ADP released Wednesday.

Initial forecasts suggested that the final tally of private payrolls added in December would be closer to 410,000 positions, but the ADP figures were ultimately almost double. It was also significantly higher than the recently revised figures for November, which ADP estimated at 505,000, down from an initial estimate of 535,000.

The numbers also contrasted with data from the Department of Labor which showed a record 4.5 million Americans left their jobs in November, a 3% increase in the national quit rate. The month of November, he found, saw 10.6 million job postings, down from 11 million in October.

The situation in December followed a similar trend that unfolded throughout the last quarter of 2021. Jobs in the service sector paved the way for growth, with nearly 669,000 new jobs created in December. leisure and hospitality stations alone adding 246,000 jobs. Large companies with 500 or more employees were also responsible for the bulk of these positions, adding 319,000 openings.

The goods-producing sectors accounted for a much smaller gain of 138,000 jobs. While globally higher than the 110,000 created in November, the slowing job growth here may indicate that the supply chain bottlenecks that choked many companies last year continue to grow. wreak havoc in industries like manufacturing.

Nela Richardson, chief economist of ADP, said December’s good performance was likely due to developments related to the COVID-19 pandemic. The Delta variant that skyrocketed cases last summer, she said, was likely on the decline and allowed more industries affected by the pandemic to recover. In contrast, Richardson notes that any impact of the new Omicron variant that appeared in late November remains to be seen.

“The December job market strengthened as the fallout from the Delta variant wore off and Omicron’s impact had yet to be seen,” Richardson said in a press release accompanying the new ones. figures. “Job gains were widespread, with goods producers adding the best reading of the year, while service providers led growth. ”

As usual, the ADP report will provide an important backdrop for the Ministry of Labor’s non-farm payroll report to be released on Friday. November saw only 210,000 jobs added, less than half of ADP found in its report, so it’s possible December will see a similar outlook.

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