ADP: 164,000 private sector jobs created in December; fourth straight increase

Doug Cunningham
·2 min read
UPI
ADP reported Thursday that 164,000 private sector jobs were created in December. The vast majority of them -- 155,000 -- were service-producing jobs. File Photo by Jim Ruymen/UPI

Jan. 4 (UPI) -- Private payroll processor ADP said Thursday that U.S. private sector jobs rose for the fourth consecutive month in December, placing the labor market close to pre-pandemic levels.

ADP reported Thursday that 164,000 private sector jobs were created in December, "led by a healthy bump in leisure and hospitality hiring."

"We're returning to a labor market that's very much aligned with pre-pandemic hiring," said Nela Richardson, chief economist, ADP in a statement. "While wages didn't drive the recent bout of inflation, now that pay growth has retreated, any risk of a wage-price spiral has all but disappeared."

The vast majority of the job gains -- 155,000 -- were service-producing while 9,000 goods-producing jobs were added.

But manufacturing continued to struggle, losing 13,000 jobs in December. Construction held strong, adding 24,000 jobs "in the face of high-interest rates."

Pay rose 5.4% in December, down slightly from the 5.6% pay gain in November. ADP said that pay increase deceleration began in September 2022.

For people who switched jobs, pay rose by 8%.

Companies with between 250-499 workers lost 5,000 jobs. The other four company size categories all gained jobs, according to ADP.

By region the West created the most jobs in December with 109,000, followed by the Northeast with 94,000.

Both the Midwest and the South lost jobs, 21,000 and 7,000 respectively.

ADP's National Employment Report is based on actual, anonymized payroll data of 25 million U.S. employees.

Private payrolls rose by 103,000 jobs in November with service jobs leading the climb.