UPDATE: U.S. private sector adds healthy 190,000 jobs in November: ADP
By Greg Robb, MarketWatch
Pace of job growth slows from hurricane-impacted 235,000 in October
The numbers: Private-sector employment slowed down in November, as employers added 190,000 jobs, Automatic Data Processing Inc. reported Wednesday. Economists had expected an increase of 180,000 private-sector jobs, compared with October estimate of a gain of 235,000.
What happened: According to ADP, small private-sector businesses added 50,000 jobs in November, midsize businesses added 99,000, and large businesses added 41,000. Most of those gains were in the service sector -- 155,000 jobs added there, compared with 36,000 for goods producers. Manufacturing added a solid 40,000 jobs.
Big picture: Markets look to ADP's report on private-sector payrolls to provide guidance on the Labor Department's jobs estimate, which will be released Friday and includes information on both private- and public-sector payrolls. Over the past year, many analysts say the ADP data rarely have much bearing on their expectations. Economists polled by MarketWatch expect the government to report Friday that nonfarm-payroll employment expanded by 204,000 in November, below the October gain of 261,000.
What are they saying? "It is hard to find any problems in the job market," said Mark Zandi, chief economist of Moody's Analytics. "We are very likely to have a sub-4% unemployment rate as we move into 2018," he added in a call with reporters.
Market reaction: The Dow Jones Industrial Averageand Standard & Poor'swere set to open lower Wednesday.
-Greg Robb; 415-439-6400; AskNewswires@dowjones.com
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12-06-17 1007ETCopyright (c) 2017 Dow Jones & Company, Inc.