ADP: Private Sector Adds 534,000 November Jobs

In the first of three key November employment reports this week, ADP, Roseland, N.J., said private-sector employment rose by a healthy 534,000 new jobs in November.

The company’s monthly National Employment Report said by company size, small businesses (1-49 employees) added 115,000 jobs; medium businesses (50-499 employees) added 142,000 jobs; and large businesses added 277,000 jobs.

By sector, goods-producing businesses added 110,000 jobs, while service-providing businesses added 424,000 jobs. Within the latter, financial service businesses added 13,000 jobs in November; in the former, construction businesses added 52,000 jobs.

“The labor market recovery continued to power through its challenges last month,” said ADP Chief Economist Nela Richardson. “November’s job gains bring the three-month average to 543,000 monthly jobs added, a modest uptick from the job pace earlier this year. Job gains have eclipsed 15 million since the recovery began, though 5 million jobs short of pre-pandemic levels. Service providers, which are more vulnerable to the pandemic, have dominated job gains this year.

Richardson added it’s too early to tell if the Omicron variant of the coronavirus could potentially slow the jobs recovery in coming months.”

This morning, the Labor Department releases its weekly Initial Claims report for unemployment insurance. Last week, Labor said initial claims plunged by more than 70,000 from the previous week to pre-pandemic levels.

On Friday, the Bureau of Labor Statistics issues its November Employment report. Mike Fratantoni, Chief Economist with the Mortgage Bankers Association, will provide commentary and analysis in the Monday, Dec. 6 edition of MBA NewsLink.