[US] Private sector hiring fails to meet expectations

Private sector employment in the US rose by 122,000 jobs in December, failing to reach a consensus forecast of 131,000, France24 reports.

The December figure also represented a slowdown from November's employment gain of 146,000, according to a report from ADP, shared by Briefing.com. 

ADP reportedly found that hiring in manufacturing, in particular, had fallen for a third consecutive month.

Nela Richardson - ADP chief economist - said, "The labor market downshifted to a more modest pace of growth in the final month of 2024, with a slowdown in both hiring and pay gains".

Ms Richardson stated that healthcare had added more jobs than other sectors in the second half of the year.

The majority of job increases were in service-providing industries. Education and health services added 57,000 roles. Most of the job gains were reportedly driven by companies employing 500 people or more.

These latest findings add to "evidence that small businesses are under the most financial pressure," Samuel Tombs - chief US economist at Pantheon Macroeconomics - said.

However, analysts cautioned that ADP's data, though it helps them understand the big picture, is not always an effective gauge of the government employment report. The report is due on January 10.

"Right now, that picture is one of still substantial increases in jobs by a fast-growing economy but a slowing trend in job creation," Carl Weinberg - chief economist at High Frequency Economics - said.

"Today's figures do not upset that trend," he added.

According to ADP, wage gains slowed in December and those remaining in their jobs saw pay growth ease to 4.6 per cent; its slowest pace since July 2021.

Employees who changed roles had pay growth of 7.1 per cent, just below November’s rate.

Mr Weinberg reportedly added that he expects the US economy to continue to create jobs until next year. He stressed that "slower job growth in a slower-growing economy is not a recession."

Source: France24

(Quotes via original reporting)

Private sector employment in the US rose by 122,000 jobs in December, failing to reach a consensus forecast of 131,000, France24 reports.

The December figure also represented a slowdown from November's employment gain of 146,000, according to a report from ADP, shared by Briefing.com. 

ADP reportedly found that hiring in manufacturing, in particular, had fallen for a third consecutive month.

Nela Richardson - ADP chief economist - said, "The labor market downshifted to a more modest pace of growth in the final month of 2024, with a slowdown in both hiring and pay gains".

Ms Richardson stated that healthcare had added more jobs than other sectors in the second half of the year.

The majority of job increases were in service-providing industries. Education and health services added 57,000 roles. Most of the job gains were reportedly driven by companies employing 500 people or more.

These latest findings add to "evidence that small businesses are under the most financial pressure," Samuel Tombs - chief US economist at Pantheon Macroeconomics - said.

However, analysts cautioned that ADP's data, though it helps them understand the big picture, is not always an effective gauge of the government employment report. The report is due on January 10.

"Right now, that picture is one of still substantial increases in jobs by a fast-growing economy but a slowing trend in job creation," Carl Weinberg - chief economist at High Frequency Economics - said.

"Today's figures do not upset that trend," he added.

According to ADP, wage gains slowed in December and those remaining in their jobs saw pay growth ease to 4.6 per cent; its slowest pace since July 2021.

Employees who changed roles had pay growth of 7.1 per cent, just below November’s rate.

Mr Weinberg reportedly added that he expects the US economy to continue to create jobs until next year. He stressed that "slower job growth in a slower-growing economy is not a recession."

Source: France24

(Quotes via original reporting)