Rate Increases Ineffective? ADP Reading In December Soared More Than Expected!
Total U.S. private employment rose more than expected in December, indicating still strong demand for labor despite higher interest rates.Private employment increased by 235,000 jobs last month, according to ADP's National Employment report on Thursday. Data for November was not revised up showing a total of 127,000 jobs added. Economists polled by Reuters had forecast private employment rising by 150,000.The ADP report, developed in conjunction with the Stanford Digital Economy Lab, was published ahead of the more comprehensive Labor Department Bureau of Labor Statistics employment report due out on Friday.Although job growth has slowed amid higher borrowing costs, the labor market remains strong. BLS data on Wednesday showed there were 10.458 million job openings at the end of November, which translates to 1.74 jobs for every unemployed person.Based on a Reuters poll of economists, the ADP reading may have risen by 180,000 jobs in December after rising by 221,000 in November.Combined with expected job gains in the government sector, the overall NFP reading is forecast to increase by 200,000 jobs. Earlier in November, the economy had created 263,000 jobs.The Fed last year raised its key rate by 425 basis points from near zero to a range of 4.25%-4.50%, the highest since late 2007. Last month, it projected at least an additional 75 basis points increase in borrowing costs by the end of 2023.
Total U.S. private employment rose more than expected in December, indicating still strong demand for labor despite higher interest rates.
Private employment increased by 235,000 jobs last month, according to ADP's National Employment report on Thursday. Data for November was not revised up showing a total of 127,000 jobs added. Economists polled by Reuters had forecast private employment rising by 150,000.
The ADP report, developed in conjunction with the Stanford Digital Economy Lab, was published ahead of the more comprehensive Labor Department Bureau of Labor Statistics employment report due out on Friday.
Although job growth has slowed amid higher borrowing costs, the labor market remains strong. BLS data on Wednesday showed there were 10.458 million job openings at the end of November, which translates to 1.74 jobs for every unemployed person.
Based on a Reuters poll of economists, the ADP reading may have risen by 180,000 jobs in December after rising by 221,000 in November.
Combined with expected job gains in the government sector, the overall NFP reading is forecast to increase by 200,000 jobs. Earlier in November, the economy had created 263,000 jobs.
The Fed last year raised its key rate by 425 basis points from near zero to a range of 4.25%-4.50%, the highest since late 2007. Last month, it projected at least an additional 75 basis points increase in borrowing costs by the end of 2023.
