ADP said a net 146k private sector jobs were created in November, just below the estimate of 150k but more noteworthy was the downward revision of 49k to the October report to a still good figure of 184k. It still remains the case that all of the job gains are coming from medium and large sized companies as those with less than 50 employees shed 17k people. Those with more than 500 people added 120k.
Sector wise, the job gains mostly came from services, as they typically do, with education/health services leading the way with a gain of 50k. Trade/transportation/utilities hired a net 28k with professional/business services adding 18k, ‘other’ 20k and leisure/hospitality hiring 15k. Information added 4k and financial services contributed 5k new jobs.
The drag was a 26k job loss in manufacturing with the recession this area of the economy is still experiencing, offset though by a rise of 30k in construction. Assume most of those construction jobs are being helped by the government, whether infrastructure related, Chips Act and/or IRA. There certainly is less private sector construction going on, particularly in CRE.
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