ADP Sets Strong Stage for Labor Department Payrolls

By Jon C. Ogg Updated Jan 12, 5:43AM EST · Published Dec 6, 11:45AM EST

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ADP Sets Strong Stage for Labor Department Payrolls — © Thinkstock

It is no secret that economic growth has picked up in 2017, and it is no secret that the employment picture is looking better than it has at any point since the Great Recession. ADP’s monthly payrolls report is often used as a bias-generation preview for the key monthly payrolls and unemployment data from the U.S. Department of Labor.

ADP announced on Wednesday morning that private sector payrolls increased by 190,000 in November. That is above the 175,000 that was project by Dow Jones and the consensus target of 185,000 published by Reuters.

The monthly gains in payrolls were dominated by midsized businesses, which have 50 to 499 employees. That group added 99,000 of the total 190,000. Small businesses added 50,000 jobs and large businesses added 41,000 jobs.

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The biggest gains, as usual, were in the services sector:

Trade/transportation/utilities, 36,000
Information, −13,000
Financial activities, 7,000
Professional/business services, 47,000
Professional/technical services, 8,000
Management of companies/enterprises, 2,000
Administrative/support services, 38,000
Education/health services, 54,000
Health care/social assistance, 31,000
Education, 23,000
Leisure/hospitality, 25,000
Other services, −2,000

Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said:

The labor market continues to grow at a solid pace. 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.

Mark Zandi, chief economist of Moody’s Analytics, said:

The job market is red hot, with broad-based job gains across industries and company sizes. 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.

As far as what is expected from the key employment on Friday, the Reuters poll for total nonfarm payrolls is 200,000. Dow Jones has a consensus estimate of 195,000. October’s gain was up at 261,000.

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.