Private Sector Adds 93,000 Jobs as Market Improves: ADP
The economy created 93,000 private sector jobs in November, pointing to the first signs of a turnaround in the labor market, according to the latest report from ADP and Macroeconomic Advisors.
Job creation came primarily from the service sector, which rose by 79,000, gaining for the 10th month in a row. Goods producers added 14,000, while manufacturing lost 16,000.
the biggest rise since November 2007, after an upwardly revised gain of 82,000 the month before. The October figure was originally reported as a gain of 43,000.
The median of estimates from 36 economists surveyed by Reuters for the ADP Employer Services report, jointly developed with Macroeconomic Advisers, was for a rise of 69,000 private-sector jobs in November.
The ADP figures come ahead of the government's much more comprehensive labor market report on Friday, which includes both public and private sector employment.
That report is expected to show a rise in overall nonfarm payrolls of 140,000 last month, based on a Reuters poll of analysts, with a gain in private payrolls of 153,000.
A separate report showed that planned job cuts for November were 28 percent higher than those reported for October, bringing the pace of downsizing to its highest level in eight months, a report by global outplacement consultancy Challenger, Gray & Christmas showed Wednesday.
Employers announced plans to reduce payrolls by 48,711 jobs in November, compared with 37,986 planned layoffs reported in October, according to the report.
The non-profit sector led the surge, with 10,761 layoffs during November.
"Government and non-profit job cuts are down 16 percent from a year ago, but that is probably little consolation to employees in the sector, which is still struggling despite signs of recovery in other areas of the economy," John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement.
"The November increase in job cuts is not indicative of a broader trend," he added. "Historically, job cuts tend to increase in the final months of the year. This is the period when many companies make budget and payroll decisions for the coming year."
This year, job cuts are well below 2009's levels, the report showed. November's planned job cuts were 3.3 percent lower than those announced in the same month last year and overall employers announced 497,969 job cuts from January through November, 60 percent lower than in the same year-ago period.
Hiring announcements totaled 26,012 in November, led by retailers, who planned to add 15,900 seasonal workers.
—Reuters contributed to this report.