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215,000 private sector jobs added in November according to ADP Report

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The ADP Employment Report for November was released Wednesday and it found that 215,000 private sector jobs were added in November. This made November the strongest month for private sector job growth in 2013. In October, ADP reported 130,000 jobs.

"The job market remained surprisingly resilient to the government shutdown and brinkmanship over the treasury debt limit. Employers across all industries and company sizes looked through the political battle in Washington. If anything, job growth appears to be picking up” Mark Zandi, chief economist of Moody’s Analytics, said in the release.

All sectors increased employment in November including manufacturing and construction which added 18,000 jobs each. This was the most jobs added in manufacturing since early 2012 according to ADP.

As is always the case in our economy, the lion’s share of the jobs were in the service sector which added 176,000 jobs in November, up from 156,000 in October. This was the largest gain in the service sector in a year. Among the service industries trade/transportation/utilities added the most jobs--45,000--over the month. Professional/business services employment rose by 38,000, while financial activities added 5,000 jobs.

Small businesses were hiring possible for anticipated holiday traffic. Small businesses added 102,000 with slightly more than half of those in firms with fewer than 20 employees. Large businesses with more than 1,000 employees added 70,000 workers.

The job numbers are somewhat surprising given the general pessimism in the public about the economy and the direction of the country. Gridlock in Washington has hurt the confidence consumers have in the economy. It appears, however, that business is more optimistic over the future than the average American. Perhaps the negative opinions consumers have is due to the political game playing in Congress.

What is not known is what the job numbers would have been if it were not for the sequester. One camp will argue the sequester had no effect. The other camp believes that if government budgets were not cut, job growth would be closer to the 400,000 a month needed to bring the unemployment rate down.

This is not the “official” jobs report. That will be released by the Bureau of Labor Statistics on Friday. ADP only tracks public sector jobs and does not count public sector jobs or the unemployment rate.

The ADP National Employment Report® is a monthly measure of the change in total U.S. nonfarm private employment derived from actual, anonymous payroll data of client companies served by ADP®, a leading provider of human capital management solutions. The report measures nearly 24 million U.S. workers. It is produced in collaboration with Moody’s Analytics, Inc.

Perhaps this news plus record highs on the Stock Market and the fact the deficit is falling at record levels might encourage consumers to spend this holiday season. Home sales in October were the strongest in 33 years. That would do a great deal to get 2014 off to a good start.

Meanwhile, we will wait for the BLS Report Friday.

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