U.S. Job Creation Jumps to New Level of Growth

U.S. private sector employment increased by 238,000 jobs from November to December, according to the December ADP National Employment Report.


The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis. It is conducted in collaboration with Moody's Analytics.


Goods-producing employment rose by 69,000 jobs in December, up from an upwardly revised figure of 46,000 in November. Construction had its best month since 2006, adding 48,000 to payrolls. Manufacturing was strong as well, but growth slowed slightly to 19,000 in December.


Over the course of 2013, goods-producers added 286,000 jobs. Nearly 75 percent of these gains came from construction as the housing recovery accelerated throughout 2013. Service-providing industries added 170,000 jobs in December, down slightly from an upwardly revised November figure of 182,000. The ADP National Employment Report indicates that professional/ business services contributed the most to growth in service-providing industries, adding 53,000 jobs. This was the largest gain in the industry in a year. 


Expansion in trade/transportation/utilities slowed slightly, adding 47,000 jobs in December.


Private payrolls increased by nearly 1.9 million jobs in the service-providing industries in 2013. The bulk of this increase was split evenly between transportation/trade/utilities and professional/business services.  Finance brought up the rear gaining just 59,000 in the last twelve months.


"The U.S. private sector added 238,000 jobs in December, surpassing November as the strongest month for job growth in 2013,” says Carlos Rodriguez, president and chief executive officer of ADP.  “It’s encouraging news that hopefully bodes well for 2014."


Mark Zandi, chief economist of Moody’s Analytics, said, "The job market ended 2013 on a high note.  Job growth meaningfully accelerated and is now over 200,000 per month.  Job gains are broad-based across industries, most notably in construction and manufacturing.  It appears that businesses are growing more confident and increasing their hiring.”


Payroll growth for businesses with 49 or fewer employees accelerated in December, adding 108,000 jobs.  This is the fastest that small businesses have grown since the beginning of 2012. Employment levels among medium-sized companies with 50-499 employees rose by 59,000 and employment at large companies – those with 500 or more employees – increased by 71,000. Both of these figures are relatively unchanged from last month. 

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