Private sector companies added 122,000 jobs in December, less than expected, ADP says

Source: CNBC

Economy
Private sector companies added 122,000 jobs in December, less than expected, ADP says

Published Wed, Jan 8 20258:15 AM EST
Jeff Cox
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Key Points
* Companies added a seasonally adjusted 122,000 jobs for the month, down from 146,000 additions in November and less than the Dow Jones consensus forecast for 136,000.
* On wages, pay grew at a 4.6% rate from a year ago, the slowest pace since July 2021.

Private sector job creation eased more than expected in December while wages grew at the slowest pace in nearly three-and-a-half years, payment processing firm ADP reported Wednesday.

Companies added a seasonally adjusted 122,000 jobs for the month, down from 146,000 additions in November and less than the Dow Jones consensus forecast for 136,000. It was the smallest increase since August. ... On wages, pay grew at a 4.6% rate from a year ago, the slowest pace since July 2021.

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The ADP report comes two days ahead of the more closely watched nonfarm payrolls count from the Bureau of Labor Statistics. Economists polled by Dow Jones expect that report to show a gain of 155,000, which in itself would mark a sharp slowdown from November’s unexpectedly strong 227,000.

Federal Reserve policymakers are watching the jobs numbers closely as they plot their next moves for monetary policy. While most Fed officials have said they believe the labor market is solid, they are looking to keep interest rates less restrictive so as not to threaten job creation.

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Read more: https://www.cnbc.com/2025/01/08/private-sector-companies-added-122000-jobs-in-december-less-than-expected-adp-says.html

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ADP National Employment Report: Private Sector Employment Increased by 122,000 Jobs in December; Annual Pay was Up 4.6%

https://www.prnewswire.com/news-releases/adp-national-employment-report-private-sector-employment-increased-by-122-000-jobs-in-december-annual-pay-was-up-4-6-302345778.html

News provided by
ADP, Inc.
Jan 08, 2025, 08:15 ET

ROSELAND, N.J., Jan. 8, 2025 /PRNewswire/ -- Private sector employment increased by 122,000 jobs in December and annual pay was up 4.6 percent year-over-year, according to the December ADP National Employment Report produced by ADP Research in collaboration with the Stanford Digital Economy Lab {"Stanford Lab"}. The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.

The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. The report details the current month's total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. ADP's pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.

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