Private companies added 208,000 jobs to their payrolls last month, according to The ADP National Employment Report. This was lower than economists’ predictions of 220,000 jobs, but still in line with the previous six months.
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“November continued to show solid job growth above 200,000,” says Carlos Rodriguez, president and chief executive officer of payroll processor ADP. “Small businesses continued to drive job gains adding almost half the total for the month.”
Small businesses with fewer than 50 employees added 101,000 jobs last month, while medium businesses (50 – 499 employees) added 65,000 jobs, and large businesses (500-plus employees) added 42,000.
The construction industry added 17,000 jobs in November, down from 27,000 jobs in October. Manufacturing was slightly down from October’s 13,000 jobs, with 11,000 jobs added. In total, goods-producing jobs declined from 46,000 jobs to 32,000 jobs.
Service-producing jobs also declined, from 187,000 jobs in October to 176,000 jobs in November. Business and professional services added 37,000 jobs, down from 53,000 in October; financial activities added 5,000 jobs, down from 6,000 in October. Trade, transportation, and utilities added 49,000 jobs, slightly higher than October’s 48,000.
“Steady as she goes in the job market,” says Mark Zandi, chief economist at Moody’s Analytics Inc., which produces the report with ADP. “At this pace the unemployment rate will drop by half a percentage point per annum. The tightening in the job market will soon prompt acceleration in wage growth.”
The PayScale Index forecasts a 0.3 percent increase in wages for the fourth quarter of 2014, after a Q3 increase of 1.2 percent.
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