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US adds year-high 257,000 jobs in December, ADP reports

January 06, 2016

US private sector employment rose by 257,000 jobs in December from November, the largest monthly increase for the year, according to the ADP national employment report produced by Automatic Data Processing Inc. (NASD: ADP) in collaboration with Moody’s Analytics. December’s jobs gain is an increase from November’s 211,000 additions.

Overall, the average monthly employment growth was just under 200,000 for the year compared to almost 240,000 jobs per month in 2014. Weakness in the energy and manufacturing sectors was mostly responsible for the drop off.

“Strong job growth shows no signs of abating,” said Mark Zandi, chief economist of Moody’s Analytics. “The only industry shedding jobs is energy. If this pace of job growth is sustained, which seems likely, the economy will be back to full employment by mid-year. This is a significant achievement, given that the last time the economy was at full employment was nearly a decade ago.”

The jobs gain exceeded the highest projection in a Bloomberg survey of 39 economists. The median forecast in the Bloomberg survey called for a 198,000 increase, with estimates ranging from 150,000 to 230,000.

Large businesses added 97,000 jobs in December, an increase from the upwardly revised 80,000 jobs added in November. Businesses with more than 1,000 employees added 58,000 jobs, while businesses with 500 to 999 employees added 39,000 jobs.

Small businesses added 95,000 jobs in December and midsize businesses added 65,000 jobs, according to the report.

By sector, the service-providing sector added 234,000 jobs, up from an upwardly revised 213,000 in November. Professional/business services contributed 66,000 jobs, the largest increase in this sector in 2015. Trade/transportation/utilities grew by 38,000, down slightly from an upwardly revised 41,000 the previous month. The 13,000 new jobs added in financial activities were right in line with the average for the year.

The goods-producing sector gained 23,000 jobs in December, a turnaround from a downwardly revised loss of 2,000 jobs in November. The construction industry added 24,000 jobs, which was roughly in line with the 21,000 average monthly jobs gained for the year. Manufacturing stayed in positive territory for the second consecutive month, adding 2,000 jobs.