US businesses added 208,000 jobs last month
American businesses hired at a strong rate last month. According to the latest ADP National Employment Report, private-sector employment surged by 208,000 from October to November, on a seasonally adjusted basis.
This is the third straight consecutive that hiring in the US has been over 200,000.
The results suggest that businesses are confident about the US economy to expand their workforce even though the global economy is growing at a sluggish pace.
There has been strong economic growth in the US, with economy growing at an annual rate of 4.3 percent from April through September, the highest six-month rate in over a decade.
Small companies with less than 50 employees accounted for almost half the job gain for the second straight month.
Ahu Yildirmaz, vice president of the ADP Research Institute, said that banks are now lending more to small businesses, which is allowing them to expand their workforce.
“The broadening of hiring to small companies is another sign of an economy returning to health,” Yildirmaz said.
Construction companies added 17,000 jobs. Manufacturers added 11,000 jobs. And retail, transportation and utility companies gained 49,000 jobs.
The results are a signal that the government’s report on November jobs, which will be released on Friday, is likely to show strength.
However, unlike the results which will be released on Friday, the ADP Employment Report is not as comprehensive, as it only covers private businesses and not government agencies.
So far employers have added 229,000 jobs a month compared to an average of 194,000 last year.
The report “adds to the evidence that employment growth remains solid,” said Jim O’Sullivan, an economist at High Frequency Economics, a forecasting firm.
However, while hiring is robust there has not been a significant increase in wages. Average hourly wages have only risen 2 percent in the past year – barely higher than the inflation rate.