Private sector employers added 122,000 jobs in December, fewer than expected
Private sector job creation slowed more than expected in December while wages grew at the slowest pace in nearly 3 1/2 years, payment processing firm ADP reported Wednesday.
Employers added a seasonally adjusted 122,000 jobs for the month, down from 146,000 in November and short of the Dow Jones consensus estimate of 136,000. It was the smallest increase since August.
On wages, payrolls grew at a 4.6% rate from a year ago, the slowest pace since July 2021
“The labor market eased to a more moderate pace of growth in the final month of 2024, with both hiring and wage gains slowing,” said ADP chief economist Nela Richardson.
The ADP report comes two days ahead of the Bureau of Labor Statistics’ more closely watched nonfarm payrolls count. Economists surveyed by Dow Jones had forecast the report would show a gain of 155,000, which would itself mark a sharp slowdown from November’s unexpectedly strong 227,000.
Federal Reserve policymakers are watching the jobs numbers closely as they plan their next moves on monetary policy. While most Fed officials have said they believe the labor market is solid, they have sought to keep interest rates on a more moderate footing so as not to threaten job creation.
They have also expressed greater confidence that inflation has stabilized, though it remains above the Fed’s 2% target. The ADP numbers could bolster the argument that wages are not holding down inflation.
Source: CNBC
